FTQI vs QQQ
First Trust Nasdaq BuyWrite Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FTQI offers more diversification with 183 holdings.
Side-by-Side Comparison
| Metric | FTQI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.18% | |
| AUM | $951M | $496.3B | |
| Dividend Yield | 11.30% | 0.44% | |
| Holdings | 183 | 108 | |
| YTD Return | +13.18% | +16.23% | |
| 1Y Return | +22.25% | +26.23% | |
| 3Y Return (annualized) | +17.33% | +25.75% | |
| 5Y Return (annualized) | +12.21% | +14.78% | |
| Volatility (annualized) | 10.0% | 30.6% | |
| Max Drawdown | -20.4% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 6, 2014 | Mar 10, 1999 |
FTQI vs QQQ Performance
First Trust Nasdaq BuyWrite Income ETF (FTQI) 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 FTQI returned +22.25% while QQQ returned +26.23%. Year to date, FTQI is up 13.18% versus a gain of 16.23% for QQQ.
Over three years, FTQI compounded at +17.33% per year against +25.75% for QQQ; over five years the annualized figures are +12.21% and +14.78% respectively. Across the full 13-year window we track, QQQ has the edge at +13.02% annualized vs +5.09%. 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 10.0% for FTQI. 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 -20.4% for FTQI 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTQI 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, FTQI currently yields 11.30% against 0.44% for QQQ.
Holdings Overlap
FTQI and QQQ share 26 holdings out of 252 unique holdings combined, representing a 50.1% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, FTQI or QQQ?
FTQI has an expense ratio of 0.75% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, FTQI or QQQ?
Over the past year FTQI returned +22.25% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), FTQI annualized +5.09% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FTQI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.0% for FTQI. Worst drawdown: FTQI -20.4% vs QQQ -83.0%.
Should I hold both FTQI and QQQ?
FTQI and QQQ have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTQI and QQQ?
FTQI and QQQ share 26 common holdings with a 50.1% weight overlap. Combined, they hold 252 unique securities.
Which pays a higher dividend, FTQI or QQQ?
FTQI yields 11.30% while QQQ yields 0.44%, so FTQI currently pays the higher dividend yield.
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