FTSL vs QQQ
First Trust Senior Loan Fund ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FTSL offers more diversification with 333 holdings.
Side-by-Side Comparison
| Metric | FTSL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.18% | |
| AUM | $2.3B | $496.3B | |
| Dividend Yield | 6.39% | 0.44% | |
| Holdings | 333 | 108 | |
| YTD Return | +1.65% | +16.23% | |
| 1Y Return | +3.38% | +26.23% | |
| 3Y Return (annualized) | +6.47% | +25.75% | |
| 5Y Return (annualized) | +5.09% | +14.78% | |
| Volatility (annualized) | 4.9% | 30.6% | |
| Max Drawdown | -26.4% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 1, 2013 | Mar 10, 1999 |
FTSL vs QQQ Performance
First Trust Senior Loan Fund ETF (FTSL) 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 FTSL returned +3.38% while QQQ returned +26.23%. Year to date, FTSL is up 1.65% versus a gain of 16.23% for QQQ.
Over three years, FTSL compounded at +6.47% per year against +25.75% for QQQ; over five years the annualized figures are +5.09% and +14.78% respectively. Across the full 13-year window we track, QQQ has the edge at +13.02% annualized vs +1.66%. 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 4.9% for FTSL. 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 -26.4% for FTSL 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTSL charges 0.70% per year while QQQ charges 0.18%. On a $10,000 position that is $70 vs $18 annually, a gap of $52 per year that compounds over a long holding period. On income, FTSL currently yields 6.39% against 0.44% for QQQ.
Holdings Overlap
FTSL and QQQ share 0 holdings out of 156 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTSL or QQQ?
FTSL has an expense ratio of 0.70% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, FTSL or QQQ?
Over the past year FTSL returned +3.38% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), FTSL annualized +1.66% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FTSL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.9% for FTSL. Worst drawdown: FTSL -26.4% vs QQQ -83.0%.
Should I hold both FTSL and QQQ?
FTSL and QQQ have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTSL and QQQ?
FTSL and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 156 unique securities.
Which pays a higher dividend, FTSL or QQQ?
FTSL yields 6.39% while QQQ yields 0.44%, so FTSL currently pays the higher dividend yield.
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