FTDS vs QQQ
First Trust Dividend Strength ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FTDS delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | FTDS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.18% | |
| AUM | $38M | $455.8B | |
| Dividend Yield | 1.67% | 0.41% | |
| Holdings | 51 | 108 | |
| YTD Return | +16.58% | +17.46% | |
| 1Y Return | +26.17% | +26.02% | |
| 3Y Return (annualized) | +16.66% | +25.51% | |
| 5Y Return (annualized) | +8.21% | +15.12% | |
| Volatility (annualized) | 17.5% | 30.6% | |
| Max Drawdown | -54.7% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 5, 2006 | Mar 10, 1999 |
FTDS vs QQQ Performance
First Trust Dividend Strength ETF (FTDS) 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 FTDS returned +26.17% while QQQ returned +26.02%. Year to date, FTDS is up 16.58% versus a gain of 17.46% for QQQ.
Over three years, FTDS compounded at +16.66% per year against +25.51% for QQQ; over five years the annualized figures are +8.21% and +15.12% respectively. Across the full 20-year window we track, QQQ has the edge at +13.08% 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 30.6% compared with 17.5% 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 -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 0.76. 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 1.67% against 0.41% for QQQ.
Holdings Overlap
FTDS and QQQ share 1 holdings out of 152 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FTDS | Weight in QQQ | Difference |
|---|---|---|---|
| BKR | 1.90% | 0.25% | 1.65% |
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. On a $10,000 investment, that is $52 per year of difference.
Which performed better, FTDS or QQQ?
Over the past year FTDS returned +26.17% vs +26.02% for QQQ, so FTDS leads on 1-year performance. Over the longest common window we track (20 years), FTDS annualized +6.82% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, FTDS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.5% for FTDS. Worst drawdown: FTDS -54.7% vs QQQ -83.0%.
Should I hold both FTDS and QQQ?
FTDS and QQQ have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTDS and QQQ?
FTDS and QQQ share 1 common holdings with a 0.3% weight overlap. Combined, they hold 152 unique securities.
Which pays a higher dividend, FTDS or QQQ?
FTDS yields 1.67% while QQQ yields 0.41%, so FTDS currently pays the higher dividend yield.
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