GDEC vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricGDECQQQWinner
Expense Ratio0.85%0.18%
AUM$436M$455.8B
Dividend Yield0.00%0.41%
Holdings5108
YTD Return+7.17%+18.31%
1Y Return+12.61%+25.37%
3Y Return (annualized)-+25.79%
5Y Return (annualized)-+15.20%
Volatility (annualized)5.3%30.6%
Max Drawdown-10.6%-83.0%
Fund FamilyFirst Trust Portfolios (US)Invesco (US)
CategoryAlternativeEquity
InceptionDec 15, 2023Mar 10, 1999

GDEC vs QQQ Performance

FT Vest US Equity Moderate Buffer ETF - December (GDEC) 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 GDEC returned +12.61% while QQQ returned +25.37%. Year to date, GDEC is up 7.17% versus a gain of 18.31% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 5.3% for GDEC. 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 -10.6% for GDEC 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 0.85. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

GDEC charges 0.85% per year while QQQ charges 0.18%. On a $10,000 position that is $85 vs $18 annually, a gap of $67 per year that compounds over a long holding period. On income, GDEC currently yields 0.00% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

GDEC and QQQ share 0 holdings out of 104 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, GDEC or QQQ?

GDEC has an expense ratio of 0.85% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $67 per year of difference.

Which performed better, GDEC or QQQ?

Over the past year GDEC returned +12.61% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), GDEC annualized +11.85% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, GDEC or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 5.3% for GDEC. Worst drawdown: GDEC -10.6% vs QQQ -83.0%.

Should I hold both GDEC and QQQ?

GDEC and QQQ have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between GDEC and QQQ?

GDEC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.

Which pays a higher dividend, GDEC or QQQ?

GDEC yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.

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