FVD vs QQQ
First Trust Value Line Dividend Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FVD offers more diversification with 253 holdings.
Side-by-Side Comparison
| Metric | FVD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.62% | 0.18% | |
| AUM | $8.3B | $496.3B | |
| Dividend Yield | 2.23% | 0.44% | |
| Holdings | 253 | 108 | |
| YTD Return | +10.56% | +19.32% | |
| 1Y Return | +12.84% | +27.08% | |
| 3Y Return (annualized) | +11.54% | +27.54% | |
| 5Y Return (annualized) | +6.36% | +15.51% | |
| Volatility (annualized) | 13.4% | 30.6% | |
| Max Drawdown | -54.1% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 19, 2003 | Mar 10, 1999 |
FVD vs QQQ Performance
First Trust Value Line Dividend Index Fund (FVD) 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 FVD returned +12.84% while QQQ returned +27.08%. Year to date, FVD is up 10.56% versus a gain of 19.32% for QQQ.
Over three years, FVD compounded at +11.54% per year against +27.54% for QQQ; over five years the annualized figures are +6.36% and +15.51% respectively. Across the full 21-year window we track, QQQ has the edge at +13.13% annualized vs +7.06%. 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 13.4% for FVD. 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 -54.1% for FVD 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FVD charges 0.62% per year while QQQ charges 0.18%. On a $10,000 position that is $62 vs $18 annually, a gap of $44 per year that compounds over a long holding period. On income, FVD currently yields 2.23% against 0.44% for QQQ.
Holdings Overlap
FVD and QQQ share 22 holdings out of 330 unique holdings combined, representing a 6.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FVD or QQQ?
FVD has an expense ratio of 0.62% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, FVD or QQQ?
Over the past year FVD returned +12.84% vs +27.08% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), FVD annualized +7.06% vs +13.13% for QQQ. Past performance does not guarantee future results.
Which is riskier, FVD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.4% for FVD. Worst drawdown: FVD -54.1% vs QQQ -83.0%.
Should I hold both FVD and QQQ?
FVD and QQQ have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FVD and QQQ?
FVD and QQQ share 22 common holdings with a 6.8% weight overlap. Combined, they hold 330 unique securities.
Which pays a higher dividend, FVD or QQQ?
FVD yields 2.23% while QQQ yields 0.44%, so FVD currently pays the higher dividend yield.
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