FTQI vs SPY
First Trust Nasdaq BuyWrite Income ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | FTQI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.09% | |
| AUM | $896M | $789.1B | |
| Dividend Yield | 11.00% | 1.01% | |
| Holdings | 183 | 505 | |
| YTD Return | +14.01% | +13.39% | |
| 1Y Return | +22.32% | +22.52% | |
| 3Y Return (annualized) | +16.94% | +21.36% | |
| 5Y Return (annualized) | +11.73% | +13.19% | |
| Volatility (annualized) | 10.0% | 15.3% | |
| Max Drawdown | -20.4% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Jan 6, 2014 | Jan 22, 1993 |
FTQI vs SPY Performance
First Trust Nasdaq BuyWrite Income ETF (FTQI) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FTQI returned +22.32% while SPY returned +22.52%. Year to date, FTQI is up 14.01% versus a gain of 13.39% for SPY.
Over three years, FTQI compounded at +16.94% per year against +21.36% for SPY; over five years the annualized figures are +11.73% and +13.19% respectively. Across the full 13-year window we track, SPY has the edge at +8.84% annualized vs +5.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.5% for SPY. 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTQI charges 0.76% per year while SPY charges 0.09%. On a $10,000 position that is $76 vs $9 annually, a gap of $67 per year that compounds over a long holding period. On income, FTQI currently yields 11.00% against 1.01% for SPY.
Holdings Overlap
FTQI and SPY share 81 holdings out of 597 unique holdings combined, representing a 41.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTQI or SPY?
FTQI has an expense ratio of 0.76% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, FTQI or SPY?
Over the past year FTQI returned +22.32% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (13 years), FTQI annualized +5.16% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, FTQI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 10.0% for FTQI. Worst drawdown: FTQI -20.4% vs SPY -56.5%.
Should I hold both FTQI and SPY?
FTQI and SPY have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTQI and SPY?
FTQI and SPY share 81 common holdings with a 41.9% weight overlap. Combined, they hold 597 unique securities.
Which pays a higher dividend, FTQI or SPY?
FTQI yields 11.00% while SPY yields 1.01%, so FTQI currently pays the higher dividend yield.
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