FTXR vs QQQ
First Trust Nasdaq Transportation ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FTXR delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | FTXR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $1.1B | $496.3B | |
| Dividend Yield | 0.98% | 0.44% | |
| Holdings | 44 | 108 | |
| YTD Return | +14.97% | +16.64% | |
| 1Y Return | +34.63% | +27.27% | |
| 3Y Return (annualized) | +17.77% | +25.96% | |
| 5Y Return (annualized) | +9.02% | +14.54% | |
| Volatility (annualized) | 23.9% | 30.6% | |
| Max Drawdown | -53.4% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2016 | Mar 10, 1999 |
FTXR vs QQQ Performance
First Trust Nasdaq Transportation ETF (FTXR) 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 FTXR returned +34.63% while QQQ returned +27.27%. Year to date, FTXR is up 14.97% versus a gain of 16.64% for QQQ.
Over three years, FTXR compounded at +17.77% per year against +25.96% for QQQ; over five years the annualized figures are +9.02% and +14.54% respectively. Across the full 10-year window we track, QQQ has the edge at +13.03% annualized vs +9.27%. 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 23.9% for FTXR. 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 -53.4% for FTXR 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTXR 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, FTXR currently yields 0.98% against 0.44% for QQQ.
Holdings Overlap
FTXR and QQQ share 4 holdings out of 141 unique holdings combined, representing a 3.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTXR or QQQ?
FTXR has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, FTXR or QQQ?
Over the past year FTXR returned +34.63% vs +27.27% for QQQ, so FTXR leads on 1-year performance. Over the longest common window we track (10 years), FTXR annualized +9.27% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, FTXR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 23.9% for FTXR. Worst drawdown: FTXR -53.4% vs QQQ -83.0%.
Should I hold both FTXR and QQQ?
FTXR and QQQ have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTXR and QQQ?
FTXR and QQQ share 4 common holdings with a 3.5% weight overlap. Combined, they hold 141 unique securities.
Which pays a higher dividend, FTXR or QQQ?
FTXR yields 0.98% while QQQ yields 0.44%, so FTXR currently pays the higher dividend yield.
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