FRTY vs QQQ

FRTY vs QQQ

Which is better, FRTY or QQQ?

Mid Cap Growth against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 49.6%.

Lower Fees: QQQHigher Returns: QQQLess Concentrated: QQQ

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricFRTYQQQ
Expense Ratio0.60%0.18%Best
AUM$145M$483.5B
Dividend Yield0.18%0.44%
Holdings41107
YTD Return+5.72%+17.21%Best
1Y Return+4.43%+22.10%Best
3Y Return (annualized)+21.84%+25.27%Best
5Y Return (annualized)+0.11%+14.60%Best
Volatility (annualized)22.8%20.4%Best
Max Drawdown-53.1%-35.1%Best
$10,000 over 5 years$10,055$19,766Best
Top 10 Weight49.6%46.5%Best
Fund FamilyAlgerInvesco (US)
CategoryEquityEquity
StyleMid Cap GrowthLarge Cap Growth
InceptionFeb 26, 2021Mar 10, 1999

Volatility and max drawdown are measured over the window both funds cover: Mar 1, 2021 to Sep 17, 2026 (5.5 years).

FRTY vs QQQ growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.5 years both funds cover.

FRTY vs QQQ Performance

Alger Mid Cap 40 ETF (FRTY) is an ETF from Alger and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FRTY returned +4.43% while QQQ returned +22.10%. Year to date, FRTY is up 5.72% versus a gain of 17.21% for QQQ.

Over three years, FRTY compounded at +21.84% per year against +25.27% for QQQ; over five years the annualized figures are +0.11% and +14.60% respectively. Across the full 6-year window we track, QQQ has the edge at +16.10% annualized vs +2.75%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FRTY has been the more volatile fund, with annualized monthly volatility of 22.8% compared with 20.4% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -53.1% for FRTY and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FRTY charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, FRTY currently yields 0.18% against 0.44% for QQQ.

Holdings Overlap

FRTY already in QQQ17.7%
QQQ already in FRTY2.9%

17.7% of FRTY's money is in holdings QQQ also owns. 2.9% of QQQ's money is in holdings FRTY also owns.

FRTY and QQQ share little of their money.

9 positions in common, counted across the 41 positions we hold weights for in FRTY and 102 in QQQ, against full books of 41 and 107.

What only one of them owns

Our book lists 87 positions for QQQ that do not appear in our book for FRTY (94.7% of the fund), and 26 for FRTY that do not appear in QQQ (76.1%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in FRTYWeight in QQQDifference
YNDXYandex Nv Ord Eur.01 Cl A Nasdaq Stock Exchange3.19%0.21%2.98%
MPWRMonolithic Power Systems Inc2.74%0.29%2.45%
AXONAxon Enterprise Inc2.44%0.22%2.22%
SNPSSynopsys2.31%0.34%1.97%
DDOGDatadog Inc1.84%0.41%1.43%
WDCWestern Digital Corp Company Guar 11/28 31.31%0.79%0.52%
MCHPMicrochip Technology Inc.1.80%0.19%1.61%
ALABAstera Labs Inc - Common1.22%0.24%0.98%
RKLBRocket Lab Corp0.84%0.19%0.65%

You are not choosing between two funds in isolation.

Whichever of FRTY and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

FRTYQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FRTY or QQQ?

FRTY has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option, by $42 a year on a $10,000 investment.

Which performed better, FRTY or QQQ?

Over the past year FRTY returned +4.43% vs +22.10% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), FRTY annualized +2.75% vs +16.10% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FRTY or QQQ?

FRTY has been the more volatile fund at 22.8% annualized versus 20.4% for QQQ. Worst drawdown: FRTY -53.1% vs QQQ -35.1%.

Should I hold both FRTY and QQQ?

FRTY and QQQ have a monthly-return correlation of 0.76, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between FRTY and QQQ?

17.7% of FRTY's money is in holdings QQQ also owns. 2.9% of QQQ's is in holdings FRTY also owns. They hold 9 positions in common, counted across the 41 positions we hold weights for in FRTY and 102 in QQQ.

Which pays a higher dividend, FRTY or QQQ?

FRTY yields 0.18% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.

Is QQQ better than FRTY?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 49.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.