FSEP vs QQQ
FT Vest US Equity Buffer ETF - September 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 | FSEP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.18% | |
| AUM | $1.2B | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 5 | 108 | |
| YTD Return | +9.19% | +16.23% | |
| 1Y Return | +14.31% | +26.23% | |
| 3Y Return (annualized) | +14.48% | +25.75% | |
| 5Y Return (annualized) | +10.34% | +14.78% | |
| Volatility (annualized) | 9.7% | 30.6% | |
| Max Drawdown | -13.8% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 18, 2020 | Mar 10, 1999 |
FSEP vs QQQ Performance
FT Vest US Equity Buffer ETF - September (FSEP) 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 FSEP returned +14.31% while QQQ returned +26.23%. Year to date, FSEP is up 9.19% versus a gain of 16.23% for QQQ.
Over three years, FSEP compounded at +14.48% per year against +25.75% for QQQ; over five years the annualized figures are +10.34% and +14.78% respectively. Across the full 6-year window we track, QQQ has the edge at +13.02% annualized vs +11.55%. 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 9.7% for FSEP. 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 -13.8% for FSEP 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FSEP charges 0.85% per year while QQQ charges 0.18%. On a $10,000 position that is $85 vs $18 annually, a gap of $67 per year that compounds over a long holding period. On income, FSEP currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
FSEP and QQQ share 0 holdings out of 103 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, FSEP or QQQ?
FSEP has an expense ratio of 0.85% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, FSEP or QQQ?
Over the past year FSEP returned +14.31% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), FSEP annualized +11.55% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FSEP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 9.7% for FSEP. Worst drawdown: FSEP -13.8% vs QQQ -83.0%.
Should I hold both FSEP and QQQ?
FSEP and QQQ have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FSEP and QQQ?
FSEP and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, FSEP or QQQ?
FSEP yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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