FTLS vs QQQ
FTLS vs QQQ
First Trust Long/Short Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FTLS offers more diversification with 390 holdings.
Side-by-Side Comparison
| Metric | FTLS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.38% | 0.18% | |
| AUM | $2.5B | $455.8B | |
| Dividend Yield | 0.90% | 0.41% | |
| Holdings | 393 | 108 | |
| YTD Return | +7.28% | +18.20% | |
| 1Y Return | +15.54% | +27.63% | |
| 3Y Return (annualized) | +13.51% | +25.54% | |
| 5Y Return (annualized) | +10.29% | +15.12% | |
| Volatility (annualized) | 8.7% | 30.6% | |
| Max Drawdown | -20.5% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 8, 2014 | Mar 10, 1999 |
FTLS vs QQQ Performance
First Trust Long/Short Equity ETF (FTLS) 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 FTLS returned +15.54% while QQQ returned +27.63%. Year to date, FTLS is up 7.28% versus a gain of 18.20% for QQQ.
Over three years, FTLS compounded at +13.51% per year against +25.54% for QQQ; over five years the annualized figures are +10.29% and +15.12% respectively. Across the full 12-year window we track, QQQ has the edge at +13.11% annualized vs +8.63%. 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 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 -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 0.81. 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 0.90% against 0.41% for QQQ.
Holdings Overlap
FTLS and QQQ share 35 holdings out of 458 unique holdings combined, representing a 30.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FTLS | Weight in QQQ | Difference |
|---|---|---|---|
| AAPL | 6.08% | 7.46% | 1.38% |
| NVDA | 3.44% | 7.88% | 4.44% |
| MSFT | 3.26% | 4.65% | 1.39% |
| AMZN | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| COST | Pro | Pro | Pro |
| WMT | Pro | Pro | Pro |
| ASML:AS | Pro | Pro | Pro |
See all 10 holdings FTLS shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
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. On a $10,000 investment, that is $120 per year of difference.
Which performed better, FTLS or QQQ?
Over the past year FTLS returned +15.54% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), FTLS annualized +8.63% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, FTLS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.7% for FTLS. Worst drawdown: FTLS -20.5% vs QQQ -83.0%.
Should I hold both FTLS and QQQ?
FTLS and QQQ have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTLS and QQQ?
FTLS and QQQ share 35 common holdings with a 30.2% weight overlap. Combined, they hold 458 unique securities.
Which pays a higher dividend, FTLS or QQQ?
FTLS yields 0.90% while QQQ yields 0.41%, so FTLS currently pays the higher dividend yield.
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