FTDS vs QQQ

FTDS vs QQQ

Which is better, FTDS or QQQ?

Mid Cap Value against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FTDS is less concentrated, with 22.2% of the fund in its ten largest positions against 46.5%.

Lower Fees: QQQHigher Returns: QQQLess Concentrated: FTDS

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

MetricFTDSQQQ
Expense Ratio0.70%0.18%Best
AUM$40M$486.1B
Dividend Yield1.53%0.44%
Holdings102107
YTD Return+17.14%+17.54%Best
1Y Return+20.77%+25.59%Best
3Y Return (annualized)+17.34%+24.63%Best
5Y Return (annualized)+8.19%+14.18%Best
Volatility (annualized)17.4%Best18.7%
Max Drawdown-54.7%-53.5%Best
$10,000 over 5 years$14,823$19,407Best
Top 10 Weight22.2%Best46.5%
Fund FamilyFirst Trust Portfolios (US)Invesco (US)
CategoryEquityEquity
StyleMid Cap ValueLarge Cap Growth
InceptionDec 5, 2006Mar 10, 1999

Volatility and max drawdown are measured over the window both funds cover: Dec 7, 2006 to Sep 4, 2026 (19.7 years).

FTDS 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 19.7 years both funds cover.

FTDS vs QQQ Performance

First Trust Dividend Strength ETF (FTDS) is an ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FTDS returned +20.77% while QQQ returned +25.59%. Year to date, FTDS is up 17.14% versus a gain of 17.54% for QQQ.

Over three years, FTDS compounded at +17.34% per year against +24.63% for QQQ; over five years the annualized figures are +8.19% and +14.18% respectively. Across the full 20-year window we track, QQQ has the edge at +15.43% annualized vs +6.82%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 18.7% compared with 17.4% for FTDS. 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 -54.7% for FTDS and -53.5% 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

FTDS charges 0.70% per year while QQQ charges 0.18%. On a $10,000 position that is $70 vs $18 annually, a gap of $52 per year that compounds over a long holding period. On income, FTDS currently yields 1.53% against 0.44% for QQQ.

Holdings Overlap

FTDS already in QQQ6.1%
QQQ already in FTDS1.4%

6.1% of FTDS's money is in holdings QQQ also owns. 1.4% of QQQ's money is in holdings FTDS also owns.

FTDS and QQQ share little of their money.

3 positions in common, counted across the 50 positions we hold weights for in FTDS and 102 in QQQ, against full books of 102 and 107.

What only one of them owns

Our book lists 93 positions for QQQ that do not appear in our book for FTDS (96.2% of the fund), and 46 for FTDS that do not appear in QQQ (91.8%).

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 FTDSWeight in QQQDifference
INTUIntuit, Inc.2.19%0.39%1.80%
QCOMQualcomm Inc.1.78%0.73%1.05%
BKRBaker Hughes Co2.14%0.27%1.87%

You are not choosing between two funds in isolation.

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

FTDSQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FTDS or QQQ?

FTDS has an expense ratio of 0.70% while QQQ charges 0.18%. QQQ is the cheaper option, by $52 a year on a $10,000 investment.

Which performed better, FTDS or QQQ?

Over the past year FTDS returned +20.77% vs +25.59% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), FTDS annualized +6.82% vs +15.43% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FTDS or QQQ?

QQQ has been the more volatile fund at 18.7% annualized versus 17.4% for FTDS. Worst drawdown: FTDS -54.7% vs QQQ -53.5%.

Should I hold both FTDS and QQQ?

FTDS 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 FTDS and QQQ?

6.1% of FTDS's money is in holdings QQQ also owns. 1.4% of QQQ's is in holdings FTDS also owns. They hold 3 positions in common, counted across the 50 positions we hold weights for in FTDS and 102 in QQQ.

Which pays a higher dividend, FTDS or QQQ?

FTDS yields 1.53% while QQQ yields 0.44%, so FTDS currently pays the higher dividend yield.

Is QQQ better than FTDS?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FTDS is less concentrated, with 22.2% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.