HDMV vs QQQ
First Trust Horizon Managed Volatility Developed International ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HDMV offers more diversification with 163 holdings.
Side-by-Side Comparison
| Metric | HDMV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.18% | |
| AUM | $17M | $496.3B | |
| Dividend Yield | 3.99% | 0.44% | |
| Holdings | 163 | 108 | |
| YTD Return | +10.65% | +16.23% | |
| 1Y Return | +12.39% | +26.23% | |
| 3Y Return (annualized) | +16.16% | +25.75% | |
| 5Y Return (annualized) | +7.19% | +14.78% | |
| Volatility (annualized) | 12.8% | 30.6% | |
| Max Drawdown | -35.5% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 24, 2016 | Mar 10, 1999 |
HDMV vs QQQ Performance
First Trust Horizon Managed Volatility Developed International ETF (HDMV) 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 HDMV returned +12.39% while QQQ returned +26.23%. Year to date, HDMV is up 10.65% versus a gain of 16.23% for QQQ.
Over three years, HDMV compounded at +16.16% per year against +25.75% for QQQ; over five years the annualized figures are +7.19% and +14.78% respectively. Across the full 10-year window we track, QQQ has the edge at +13.02% annualized vs +4.70%. 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 12.8% for HDMV. 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 -35.5% for HDMV 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HDMV charges 0.80% per year while QQQ charges 0.18%. On a $10,000 position that is $80 vs $18 annually, a gap of $62 per year that compounds over a long holding period. On income, HDMV currently yields 3.99% against 0.44% for QQQ.
Holdings Overlap
HDMV and QQQ share 1 holdings out of 250 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in HDMV | Weight in QQQ | Difference |
|---|---|---|---|
| FER:AS | 0.52% | 0.21% | 0.31% |
Frequently Asked Questions
Which is cheaper, HDMV or QQQ?
HDMV has an expense ratio of 0.80% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, HDMV or QQQ?
Over the past year HDMV returned +12.39% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), HDMV annualized +4.70% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, HDMV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.8% for HDMV. Worst drawdown: HDMV -35.5% vs QQQ -83.0%.
Should I hold both HDMV and QQQ?
HDMV and QQQ have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HDMV and QQQ?
HDMV and QQQ share 1 common holdings with a 0.2% weight overlap. Combined, they hold 250 unique securities.
Which pays a higher dividend, HDMV or QQQ?
HDMV yields 3.99% while QQQ yields 0.44%, so HDMV currently pays the higher dividend yield.
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