FTCE vs QQQ
First Trust New Constructs Core Earnings Leaders 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 | FTCE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $87M | $496.3B | |
| Dividend Yield | 0.66% | 0.44% | |
| Holdings | 103 | 108 | |
| YTD Return | +11.03% | +17.30% | |
| 1Y Return | +22.31% | +24.93% | |
| 3Y Return (annualized) | - | +26.19% | |
| 5Y Return (annualized) | - | +15.34% | |
| Volatility (annualized) | 15.0% | 30.6% | |
| Max Drawdown | -18.1% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 2, 2024 | Mar 10, 1999 |
FTCE vs QQQ Performance
First Trust New Constructs Core Earnings Leaders ETF (FTCE) 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 FTCE returned +22.31% while QQQ returned +24.93%. Year to date, FTCE is up 11.03% versus a gain of 17.30% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 15.0% for FTCE. 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 -18.1% for FTCE 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTCE 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, FTCE currently yields 0.66% against 0.44% for QQQ.
Holdings Overlap
FTCE and QQQ share 14 holdings out of 188 unique holdings combined, representing a 7.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTCE or QQQ?
FTCE 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, FTCE or QQQ?
Over the past year FTCE returned +22.31% vs +24.93% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), FTCE annualized +19.94% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, FTCE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.0% for FTCE. Worst drawdown: FTCE -18.1% vs QQQ -83.0%.
Should I hold both FTCE and QQQ?
FTCE and QQQ have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTCE and QQQ?
FTCE and QQQ share 14 common holdings with a 7.6% weight overlap. Combined, they hold 188 unique securities.
Which pays a higher dividend, FTCE or QQQ?
FTCE yields 0.66% while QQQ yields 0.44%, so FTCE currently pays the higher dividend yield.
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