FSCS vs QQQ
First Trust SMID Capital Strength ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | FSCS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $59M | $496.3B | |
| Dividend Yield | 0.98% | 0.44% | |
| Holdings | 101 | 108 | |
| YTD Return | +6.48% | +16.23% | |
| 1Y Return | +4.45% | +26.23% | |
| 3Y Return (annualized) | +11.23% | +25.75% | |
| 5Y Return (annualized) | +6.91% | +14.78% | |
| Volatility (annualized) | 19.6% | 30.6% | |
| Max Drawdown | -43.6% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 20, 2017 | Mar 10, 1999 |
FSCS vs QQQ Performance
First Trust SMID Capital Strength ETF (FSCS) is a ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FSCS returned +4.45% while QQQ returned +26.23%. Year to date, FSCS is up 6.48% versus a gain of 16.23% for QQQ.
Over three years, FSCS compounded at +11.23% per year against +25.75% for QQQ; over five years the annualized figures are +6.91% and +14.78% respectively. Across the full 9-year window we track, QQQ has the edge at +13.02% annualized vs +8.20%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 19.6% for FSCS. 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 -43.6% for FSCS and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FSCS 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, FSCS currently yields 0.98% against 0.44% for QQQ.
Holdings Overlap
FSCS and QQQ share 0 holdings out of 202 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FSCS or QQQ?
FSCS has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, FSCS or QQQ?
Over the past year FSCS returned +4.45% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), FSCS annualized +8.20% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FSCS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.6% for FSCS. Worst drawdown: FSCS -43.6% vs QQQ -83.0%.
Should I hold both FSCS and QQQ?
FSCS and QQQ have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FSCS and QQQ?
FSCS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 202 unique securities.
Which pays a higher dividend, FSCS or QQQ?
FSCS yields 0.98% while QQQ yields 0.44%, so FSCS currently pays the higher dividend yield.
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