FUMB vs QQQ
First Trust Ultra Short Duration Municipal ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FUMB offers more diversification with 252 holdings.
Side-by-Side Comparison
| Metric | FUMB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.18% | |
| AUM | $248M | $496.3B | |
| Dividend Yield | 2.75% | 0.44% | |
| Holdings | 252 | 108 | |
| YTD Return | +1.47% | +17.07% | |
| 1Y Return | +2.11% | +26.39% | |
| 3Y Return (annualized) | +2.90% | +26.08% | |
| 5Y Return (annualized) | +1.99% | +15.18% | |
| Volatility (annualized) | 0.8% | 30.6% | |
| Max Drawdown | -2.7% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 1, 2018 | Mar 10, 1999 |
FUMB vs QQQ Performance
First Trust Ultra Short Duration Municipal ETF (FUMB) 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 FUMB returned +2.11% while QQQ returned +26.39%. Year to date, FUMB is up 1.47% versus a gain of 17.07% for QQQ.
Over three years, FUMB compounded at +2.90% per year against +26.08% for QQQ; over five years the annualized figures are +1.99% and +15.18% respectively. Across the full 8-year window we track, QQQ has the edge at +13.05% annualized vs +1.38%. 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 0.8% for FUMB. 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 -2.7% for FUMB 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FUMB charges 0.29% per year while QQQ charges 0.18%. On a $10,000 position that is $29 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, FUMB currently yields 2.75% against 0.44% for QQQ.
Holdings Overlap
FUMB and QQQ share 0 holdings out of 176 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, FUMB or QQQ?
FUMB has an expense ratio of 0.29% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, FUMB or QQQ?
Over the past year FUMB returned +2.11% vs +26.39% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), FUMB annualized +1.38% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, FUMB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 0.8% for FUMB. Worst drawdown: FUMB -2.7% vs QQQ -83.0%.
Should I hold both FUMB and QQQ?
FUMB and QQQ have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FUMB and QQQ?
FUMB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 176 unique securities.
Which pays a higher dividend, FUMB or QQQ?
FUMB yields 2.75% while QQQ yields 0.44%, so FUMB currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.