FTLS vs QQQ
First Trust Long/Short Equity ETF vs Invesco QQQ Trust, Series 1
Which is better, FTLS or QQQ?
Multi Alternative against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
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 | FTLS | QQQ |
|---|---|---|
| Expense Ratio | 1.38% | 0.18%Best |
| AUM | $2.9B | $483.5B |
| Dividend Yield | 0.86% | 0.44% |
| Holdings | 363 | 107 |
| YTD Return | +8.56% | +21.16%Best |
| 1Y Return | +11.21% | +24.78%Best |
| 3Y Return (annualized) | +14.48% | +27.95%Best |
| 5Y Return (annualized) | +10.45% | +15.36%Best |
| Volatility (annualized) | 8.7%Best | 18.5% |
| Max Drawdown | -20.5%Best | -35.1% |
| $10,000 over 5 years | $16,437 | $20,430Best |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Alternative | Equity |
| Style | Multi Alternative | Large Cap Growth |
| Inception | Sep 8, 2014 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2014 to Sep 24, 2026 (12 years).
FTLS 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 years both funds cover.
FTLS vs QQQ Performance
First Trust Long/Short Equity ETF (FTLS) 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 FTLS returned +11.21% while QQQ returned +24.78%. Year to date, FTLS is up 8.56% versus a gain of 21.16% for QQQ.
Over three years, FTLS compounded at +14.48% per year against +27.95% for QQQ; over five years the annualized figures are +10.45% and +15.36% respectively. Across the full 12-year window we track, QQQ has the edge at +18.49% annualized vs +8.64%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.5% compared with 8.7% for FTLS. 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 -20.5% for FTLS 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTLS charges 1.38% per year while QQQ charges 0.18%. On a $10,000 position that is $138 vs $18 annually, a gap of $120 per year that compounds over a long holding period. On income, FTLS currently yields 0.86% against 0.44% for QQQ.
Holdings Overlap
At least 54.0% of QQQ's money is in holdings FTLS also owns.
Stated as a floor: for FTLS, our book for it covers 94.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
The two portfolios partly overlap.
37 positions in common, counted across the 346 positions we hold weights for in FTLS and 102 in QQQ, against full books of 363 and 107.
Top Shared Holdings
| Stock | Weight in FTLS | Weight in QQQ | Difference |
|---|---|---|---|
| AAPLApple, Inc | 7.09% | 7.27% | 0.18% |
| NVDANvidia Corp | 3.41% | 8.44% | 5.03% |
| MSFTMicrosoft Corp | 3.97% | 5.76% | 1.79% |
| AMZNAmazon.Com Inc | 1.55% | 4.67% | 3.12% |
| GOOGLAlphabet Inc,class A | 2.08% | 3.36% | 1.28% |
| AVGOBroadcom Inc | 1.13% | 3.16% | 2.03% |
| METAMeta Platforms Inc | 1.37% | 2.78% | 1.41% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.84% | 2.10% | 0.26% |
| WMTWalmart, Inc. | 0.83% | 2.41% | 1.58% |
| STXSeagate Technology Holdings Plc | 2.02% | 0.83% | 1.19% |
54.0% of QQQ is already inside FTLS.
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, FTLS or QQQ?
FTLS has an expense ratio of 1.38% while QQQ charges 0.18%. QQQ is the cheaper option, by $120 a year on a $10,000 investment.
Which performed better, FTLS or QQQ?
Over the past year FTLS returned +11.21% vs +24.78% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), FTLS annualized +8.64% vs +18.49% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTLS or QQQ?
QQQ has been the more volatile fund at 18.5% annualized versus 8.7% for FTLS. Worst drawdown: FTLS -20.5% vs QQQ -35.1%.
Should I hold both FTLS and QQQ?
FTLS and QQQ have a monthly-return correlation of 0.81, 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 FTLS and QQQ?
At least 54.0% of QQQ's money is in holdings FTLS also owns. Our book for FTLS is partial, so the real figure is this or higher. They hold 37 positions in common, counted across the 346 positions we hold weights for in FTLS and 102 in QQQ.
Which pays a higher dividend, FTLS or QQQ?
FTLS yields 0.86% while QQQ yields 0.44%, so FTLS currently pays the higher dividend yield.
Is QQQ better than FTLS?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.