FTXR vs QQQ

FTXR vs QQQ

Which is better, FTXR or QQQ?

Mid Cap Value against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 59.3%.

Lower Fees: QQQHigher Returns: QQQLess Concentrated: QQQ

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

MetricFTXRQQQ
Expense Ratio0.60%0.18%Best
AUM$1.0B$498.6B
Dividend Yield1.00%0.42%
Holdings88321
YTD Return+7.79%+24.32%Best
1Y Return+18.98%+25.59%Best
3Y Return (annualized)+16.75%+28.30%Best
5Y Return (annualized)+7.80%+16.83%Best
Volatility (annualized)23.9%18.9%Best
Max Drawdown-53.4%-35.1%Best
$10,000 over 5 years$14,558$21,766Best
Top 10 Weight59.3%47.2%Best
Fund FamilyFirst Trust Portfolios (US)Invesco (US)
CategoryEquityEquity
StyleMid Cap ValueLarge Cap Growth
InceptionSep 20, 2016Mar 10, 1999

Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2016 to Oct 6, 2026 (10 years).

FTXR 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 10 years both funds cover.

FTXR vs QQQ Performance

First Trust Nasdaq Transportation ETF (FTXR) 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 FTXR returned +18.98% while QQQ returned +25.59%. Year to date, FTXR is up 7.79% versus a gain of 24.32% for QQQ.

Over three years, FTXR compounded at +16.75% per year against +28.30% for QQQ; over five years the annualized figures are +7.80% and +16.83% respectively. Across the full 10-year window we track, QQQ has the edge at +20.68% annualized vs +8.45%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FTXR has been the more volatile fund, with annualized monthly volatility of 23.9% compared with 18.9% 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 -53.4% for FTXR 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 0.73. 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 1.00% against 0.42% for QQQ.

Holdings Overlap

FTXR already in QQQ16.8%
QQQ already in FTXR3.8%

16.8% of FTXR's money is in holdings QQQ also owns. 3.8% of QQQ's money is in holdings FTXR also owns.

FTXR and QQQ share little of their money.

4 positions in common, counted across the 43 positions we hold weights for in FTXR and 102 in QQQ, against full books of 88 and 321.

What only one of them owns

Our book lists 92 positions for QQQ that do not appear in our book for FTXR (94.0% of the fund), and 38 for FTXR that do not appear in QQQ (74.5%).

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.

Top Shared Holdings

StockWeight in FTXRWeight in QQQDifference
TSLATesla Inc7.03%2.92%4.11%
CSXCsx Corp.4.47%0.40%4.07%
PCARPaccar Inc.3.79%0.28%3.51%
ODFLOld Dominion Freig1.49%0.17%1.32%

You are not choosing between two funds in isolation.

Whichever of FTXR and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

FTXRQQQ

Free for up to 10 holdings. No account needed.

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, by $42 a year on a $10,000 investment.

Which performed better, FTXR or QQQ?

Over the past year FTXR returned +18.98% vs +25.59% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), FTXR annualized +8.45% vs +20.68% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FTXR or QQQ?

FTXR has been the more volatile fund at 23.9% annualized versus 18.9% for QQQ. Worst drawdown: FTXR -53.4% vs QQQ -35.1%.

Should I hold both FTXR and QQQ?

FTXR and QQQ have a monthly-return correlation of 0.73, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between FTXR and QQQ?

16.8% of FTXR's money is in holdings QQQ also owns. 3.8% of QQQ's is in holdings FTXR also owns. They hold 4 positions in common, counted across the 43 positions we hold weights for in FTXR and 102 in QQQ.

Which pays a higher dividend, FTXR or QQQ?

FTXR yields 1.00% while QQQ yields 0.42%, so FTXR currently pays the higher dividend yield.

Is QQQ better than FTXR?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 59.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.