HUSV vs QQQ
First Trust Horizon Managed Volatility Domestic ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | HUSV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.18% | |
| AUM | $74M | $455.8B | |
| Dividend Yield | 1.37% | 0.41% | |
| Holdings | 101 | 108 | |
| YTD Return | +8.25% | +19.68% | |
| 1Y Return | +4.82% | +26.75% | |
| 3Y Return (annualized) | +9.75% | +26.25% | |
| 5Y Return (annualized) | +5.94% | +15.39% | |
| Volatility (annualized) | 13.2% | 30.6% | |
| Max Drawdown | -35.7% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 24, 2016 | Mar 10, 1999 |
HUSV vs QQQ Performance
First Trust Horizon Managed Volatility Domestic ETF (HUSV) 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 HUSV returned +4.82% while QQQ returned +26.75%. Year to date, HUSV is up 8.25% versus a gain of 19.68% for QQQ.
Over three years, HUSV compounded at +9.75% per year against +26.25% for QQQ; over five years the annualized figures are +5.94% and +15.39% respectively. Across the full 10-year window we track, QQQ has the edge at +13.15% annualized vs +8.47%. 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 13.2% for HUSV. 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 -35.7% for HUSV 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HUSV charges 0.70% per year while QQQ charges 0.18%. On a $10,000 position that is $70 vs $18 annually, a gap of $52 per year that compounds over a long holding period. On income, HUSV currently yields 1.37% against 0.41% for QQQ.
Holdings Overlap
HUSV and QQQ share 15 holdings out of 189 unique holdings combined, representing a 12.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HUSV or QQQ?
HUSV has an expense ratio of 0.70% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, HUSV or QQQ?
Over the past year HUSV returned +4.82% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), HUSV annualized +8.47% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, HUSV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.2% for HUSV. Worst drawdown: HUSV -35.7% vs QQQ -83.0%.
Should I hold both HUSV and QQQ?
HUSV and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HUSV and QQQ?
HUSV and QQQ share 15 common holdings with a 12.7% weight overlap. Combined, they hold 189 unique securities.
Which pays a higher dividend, HUSV or QQQ?
HUSV yields 1.37% while QQQ yields 0.41%, so HUSV currently pays the higher dividend yield.
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