FTHI vs QQQ
First Trust BuyWrite Income ETF vs Invesco QQQ Trust, Series 1
Which is better, FTHI or QQQ?
Long-Short Strategy against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FTHI is less concentrated, with 33.0% of the fund in its ten largest positions against 46.5%.
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
| Metric | FTHI | QQQ |
|---|---|---|
| Expense Ratio | 0.75% | 0.18%Best |
| AUM | $2.5B | $483.5B |
| Dividend Yield | 8.86% | 0.44% |
| Holdings | 352 | 107 |
| YTD Return | +5.68% | +15.21%Best |
| 1Y Return | +8.36% | +19.78%Best |
| 3Y Return (annualized) | +13.32% | +24.58%Best |
| 5Y Return (annualized) | +10.64% | +13.93%Best |
| Volatility (annualized) | 11.4%Best | 18.2% |
| Max Drawdown | -35.5% | -35.1%Best |
| $10,000 over 5 years | $16,579 | $19,195Best |
| Top 10 Weight | 33.0%Best | 46.5% |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Alternative | Equity |
| Style | Long-Short Strategy | Large Cap Growth |
| Inception | Jan 6, 2014 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Jan 7, 2014 to Sep 16, 2026 (12.7 years).
FTHI 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 12.7 years both funds cover.
FTHI vs QQQ Performance
First Trust BuyWrite Income ETF (FTHI) 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 FTHI returned +8.36% while QQQ returned +19.78%. Year to date, FTHI is up 5.68% versus a gain of 15.21% for QQQ.
Over three years, FTHI compounded at +13.32% per year against +24.58% for QQQ; over five years the annualized figures are +10.64% and +13.93% respectively. Across the full 13-year window we track, QQQ has the edge at +18.21% annualized vs +4.91%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.2% compared with 11.4% for FTHI. 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 -35.5% for FTHI and -35.1% 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTHI charges 0.75% per year while QQQ charges 0.18%. On a $10,000 position that is $75 vs $18 annually, a gap of $57 per year that compounds over a long holding period. On income, FTHI currently yields 8.86% against 0.44% for QQQ.
Holdings Overlap
41.2% of FTHI's money is in holdings QQQ also owns. 61.2% of QQQ's money is in holdings FTHI also owns.
The two portfolios partly overlap.
25 positions in common, counted across the 168 positions we hold weights for in FTHI and 102 in QQQ, against full books of 352 and 107.
What only one of them owns
Our book lists 72 positions for QQQ that do not appear in our book for FTHI (37.0% of the fund), and 114 for FTHI that do not appear in QQQ (46.5%).
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
| Stock | Weight in FTHI | Weight in QQQ | Difference |
|---|---|---|---|
| AAPLApple, Inc | 7.68% | 7.27% | 0.41% |
| NVDANvidia Corp | 5.99% | 8.44% | 2.45% |
| MSFTMicrosoft Corp | 2.54% | 5.76% | 3.22% |
| AMZNAmazon.Com Inc | 2.56% | 4.67% | 2.11% |
| GOOGLAlphabet Inc,class A | 2.03% | 3.36% | 1.33% |
| AVGOBroadcom Inc | 2.15% | 3.16% | 1.01% |
| GOOGAlphabet Inc | 1.70% | 3.13% | 1.43% |
| COSTCostco Wholesale Corp. | 2.28% | 1.84% | 0.44% |
| METAMeta Platforms Inc | 1.19% | 2.78% | 1.59% |
| AMDAdvanced Micro Devices Inc | 0.36% | 3.45% | 3.09% |
61.2% of QQQ is already inside FTHI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FTHI or QQQ?
FTHI has an expense ratio of 0.75% while QQQ charges 0.18%. QQQ is the cheaper option, by $57 a year on a $10,000 investment.
Which performed better, FTHI or QQQ?
Over the past year FTHI returned +8.36% vs +19.78% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), FTHI annualized +4.91% vs +18.21% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTHI or QQQ?
QQQ has been the more volatile fund at 18.2% annualized versus 11.4% for FTHI. Worst drawdown: FTHI -35.5% vs QQQ -35.1%.
Should I hold both FTHI and QQQ?
FTHI and QQQ have a monthly-return correlation of 0.75, 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 FTHI and QQQ?
61.2% of QQQ's money is in holdings FTHI also owns. 61.2% of QQQ's is in holdings FTHI also owns. They hold 25 positions in common, counted across the 168 positions we hold weights for in FTHI and 102 in QQQ.
Which pays a higher dividend, FTHI or QQQ?
FTHI yields 8.86% while QQQ yields 0.44%, so FTHI currently pays the higher dividend yield.
Is QQQ better than FTHI?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FTHI is less concentrated, with 33.0% 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.