FTHY vs QQQ
First Trust High Yield Opportunities 2027 Term Fund vs Invesco QQQ Trust, Series 1
Which is better, FTHY or QQQ?
QQQ has been ahead.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FTHY is less concentrated, with 16.1% 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 | FTHY | QQQ |
|---|---|---|
| Expense Ratio | 3.59% | 0.18%Best |
| AUM | $644M | $483.5B |
| Dividend Yield | 10.78% | 0.44% |
| Holdings | 301 | 107 |
| YTD Return | +0.21% | +17.95%Best |
| 1Y Return | -0.88% | +21.77%Best |
| 3Y Return (annualized) | +9.92% | +25.63%Best |
| 5Y Return (annualized) | +1.62% | +15.24%Best |
| Volatility (annualized) | 11.9%Best | 20.4% |
| Max Drawdown | -31.2%Best | -35.1% |
| $10,000 over 5 years | $10,837 | $20,324Best |
| Top 10 Weight | 16.1%Best | 46.5% |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Growth |
| Inception | Jun 25, 2020 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Jun 26, 2020 to Sep 18, 2026 (6.2 years).
FTHY 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 6.2 years both funds cover.
FTHY vs QQQ Performance
First Trust High Yield Opportunities 2027 Term Fund (FTHY) 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 FTHY returned -0.88% while QQQ returned +21.77%. Year to date, FTHY is up 0.21% versus a gain of 17.95% for QQQ.
Over three years, FTHY compounded at +9.92% per year against +25.63% for QQQ; over five years the annualized figures are +1.62% and +15.24% respectively. Across the full 6-year window we track, QQQ has the edge at +19.93% annualized vs +2.34%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.4% compared with 11.9% for FTHY. 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 -31.2% for FTHY 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 0.67. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FTHY charges 3.59% per year while QQQ charges 0.18%. On a $10,000 position that is $359 vs $18 annually, a gap of $341 per year that compounds over a long holding period. On income, FTHY currently yields 10.78% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 222 holdings in FTHY and 102 in QQQ, totalling 102.9% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 68 days apart, FTHY as of May 29, 2026 and QQQ as of Aug 5, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 222 positions we hold weights for in FTHY and 102 in QQQ, against full books of 301 and 107.
What only one of them owns
Our book lists 96 positions for QQQ that do not appear in our book for FTHY (97.5% of the fund), and 221 for FTHY that do not appear in QQQ (102.9%).
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.
You are not choosing between two funds in isolation.
Whichever of FTHY and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FTHY or QQQ?
FTHY has an expense ratio of 3.59% while QQQ charges 0.18%. QQQ is the cheaper option, by $341 a year on a $10,000 investment.
Which performed better, FTHY or QQQ?
Over the past year FTHY returned -0.88% vs +21.77% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), FTHY annualized +2.34% vs +19.93% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTHY or QQQ?
QQQ has been the more volatile fund at 20.4% annualized versus 11.9% for FTHY. Worst drawdown: FTHY -31.2% vs QQQ -35.1%.
Should I hold both FTHY and QQQ?
FTHY and QQQ have a monthly-return correlation of 0.67, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FTHY or QQQ?
FTHY yields 10.78% while QQQ yields 0.44%, so FTHY currently pays the higher dividend yield.
Is QQQ better than FTHY?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FTHY is less concentrated, with 16.1% 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.