FTXO vs QQQ
First Trust Nasdaq Bank ETF vs Invesco QQQ Trust, Series 1
Which is better, FTXO or QQQ?
Large Cap Value against Large Cap Growth.
QQQ has a lower expense ratio. FTXO led over 3Y, QQQ over 1Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 60.0%.
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 | FTXO | QQQ |
|---|---|---|
| Expense Ratio | 0.60% | 0.18%Best |
| AUM | $293M | $483.5B |
| Dividend Yield | 1.75% | 0.44% |
| Holdings | 102 | 107 |
| YTD Return | +11.15% | +16.87%Best |
| 1Y Return | +19.76% | +22.98%Best |
| 3Y Return (annualized) | +27.91%Best | +24.98% |
| 5Y Return (annualized) | +8.65% | +14.39%Best |
| Volatility (annualized) | 27.0% | 19.1%Best |
| Max Drawdown | -57.8% | -35.1%Best |
| $10,000 over 5 years | $15,141 | $19,586Best |
| Top 10 Weight | 60.0% | 46.5%Best |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Sep 20, 2016 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Oct 7, 2016 to Sep 11, 2026 (9.9 years).
FTXO 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 9.9 years both funds cover.
FTXO vs QQQ Performance
First Trust Nasdaq Bank ETF (FTXO) 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 FTXO returned +19.76% while QQQ returned +22.98%. Year to date, FTXO is up 11.15% versus a gain of 16.87% for QQQ.
Over three years, FTXO compounded at +27.91% per year against +24.98% for QQQ; over five years the annualized figures are +8.65% and +14.39% respectively. Across the full 10-year window we track, QQQ has the edge at +20.24% annualized vs +8.97%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FTXO has been the more volatile fund, with annualized monthly volatility of 27.0% compared with 19.1% for QQQ. 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 -57.8% for FTXO 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 0.45. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FTXO charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, FTXO currently yields 1.75% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 49 holdings in FTXO and 102 in QQQ, totalling 99.8% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 49 positions we hold weights for in FTXO and 102 in QQQ, against full books of 102 and 107.
What only one of them owns
Our book lists 95 positions for QQQ that do not appear in our book for FTXO (97.0% of the fund), and 47 for FTXO that do not appear in QQQ (98.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of FTXO and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FTXO or QQQ?
FTXO has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option, by $42 a year on a $10,000 investment.
Which performed better, FTXO or QQQ?
Over the past year FTXO returned +19.76% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), FTXO annualized +8.97% vs +20.24% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTXO or QQQ?
FTXO has been the more volatile fund at 27.0% annualized versus 19.1% for QQQ. Worst drawdown: FTXO -57.8% vs QQQ -35.1%.
Should I hold both FTXO and QQQ?
FTXO and QQQ have a monthly-return correlation of 0.45, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FTXO or QQQ?
FTXO yields 1.75% while QQQ yields 0.44%, so FTXO currently pays the higher dividend yield.
Is QQQ better than FTXO?
QQQ has a lower expense ratio. FTXO led over 3Y, QQQ over 1Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 60.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.