HSMV vs QQQ
First Trust Horizon Managed Volatility Small/Mid ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HSMV offers more diversification with 151 holdings.
Side-by-Side Comparison
| Metric | HSMV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.18% | |
| AUM | $41M | $496.3B | |
| Dividend Yield | 1.86% | 0.44% | |
| Holdings | 151 | 108 | |
| YTD Return | +9.80% | +16.64% | |
| 1Y Return | +9.04% | +27.27% | |
| 3Y Return (annualized) | +10.39% | +25.96% | |
| 5Y Return (annualized) | +5.02% | +14.54% | |
| Volatility (annualized) | 14.7% | 30.6% | |
| Max Drawdown | -19.2% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 6, 2020 | Mar 10, 1999 |
HSMV vs QQQ Performance
First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) 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 HSMV returned +9.04% while QQQ returned +27.27%. Year to date, HSMV is up 9.80% versus a gain of 16.64% for QQQ.
Over three years, HSMV compounded at +10.39% per year against +25.96% for QQQ; over five years the annualized figures are +5.02% and +14.54% respectively. Across the full 6-year window we track, QQQ has the edge at +13.03% annualized vs +11.38%. 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 14.7% for HSMV. 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 -19.2% for HSMV 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HSMV 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, HSMV currently yields 1.86% against 0.44% for QQQ.
Holdings Overlap
HSMV and QQQ share 0 holdings out of 252 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, HSMV or QQQ?
HSMV 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, HSMV or QQQ?
Over the past year HSMV returned +9.04% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), HSMV annualized +11.38% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, HSMV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.7% for HSMV. Worst drawdown: HSMV -19.2% vs QQQ -83.0%.
Should I hold both HSMV and QQQ?
HSMV and QQQ have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HSMV and QQQ?
HSMV and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 252 unique securities.
Which pays a higher dividend, HSMV or QQQ?
HSMV yields 1.86% while QQQ yields 0.44%, so HSMV currently pays the higher dividend yield.
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