GRID vs QQQ
First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. GRID delivered stronger 1-year returns. GRID offers more diversification with 120 holdings.
Side-by-Side Comparison
| Metric | GRID | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.18% | |
| AUM | $11.4B | $455.8B | |
| Dividend Yield | 0.78% | 0.41% | |
| Holdings | 129 | 108 | |
| YTD Return | +20.20% | +18.20% | |
| 1Y Return | +31.62% | +27.63% | |
| 3Y Return (annualized) | +23.94% | +25.54% | |
| 5Y Return (annualized) | +15.02% | +15.12% | |
| Volatility (annualized) | 20.4% | 30.6% | |
| Max Drawdown | -40.5% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 16, 2009 | Mar 10, 1999 |
GRID vs QQQ Performance
First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID) 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 GRID returned +31.62% while QQQ returned +27.63%. Year to date, GRID is up 20.20% versus a gain of 18.20% for QQQ.
Over three years, GRID compounded at +23.94% per year against +25.54% for QQQ; over five years the annualized figures are +15.02% and +15.12% respectively. Across the full 17-year window we track, QQQ has the edge at +13.11% annualized vs +11.91%. 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 20.4% for GRID. 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 -40.5% for GRID 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
GRID charges 0.56% per year while QQQ charges 0.18%. On a $10,000 position that is $56 vs $18 annually, a gap of $38 per year that compounds over a long holding period. On income, GRID currently yields 0.78% against 0.41% for QQQ.
Holdings Overlap
GRID and QQQ share 8 holdings out of 215 unique holdings combined, representing a 7.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GRID or QQQ?
GRID has an expense ratio of 0.56% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $38 per year of difference.
Which performed better, GRID or QQQ?
Over the past year GRID returned +31.62% vs +27.63% for QQQ, so GRID leads on 1-year performance. Over the longest common window we track (17 years), GRID annualized +11.91% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, GRID or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.4% for GRID. Worst drawdown: GRID -40.5% vs QQQ -83.0%.
Should I hold both GRID and QQQ?
GRID and QQQ have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GRID and QQQ?
GRID and QQQ share 8 common holdings with a 7.9% weight overlap. Combined, they hold 215 unique securities.
Which pays a higher dividend, GRID or QQQ?
GRID yields 0.78% while QQQ yields 0.41%, so GRID currently pays the higher dividend yield.
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