ILDR vs QQQ
First Trust Innovation Leaders ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. ILDR delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | ILDR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.18% | |
| AUM | $323M | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 80 | 108 | |
| YTD Return | +14.98% | +15.47% | |
| 1Y Return | +27.52% | +24.44% | |
| 3Y Return (annualized) | +29.38% | +25.47% | |
| 5Y Return (annualized) | +11.15% | +14.22% | |
| Volatility (annualized) | 23.4% | 30.6% | |
| Max Drawdown | -44.6% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 25, 2021 | Mar 10, 1999 |
ILDR vs QQQ Performance
First Trust Innovation Leaders ETF (ILDR) 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 ILDR returned +27.52% while QQQ returned +24.44%. Year to date, ILDR is up 14.98% versus a gain of 15.47% for QQQ.
Over three years, ILDR compounded at +29.38% per year against +25.47% for QQQ; over five years the annualized figures are +11.15% and +14.22% respectively. Across the full 5-year window we track, QQQ has the edge at +12.99% annualized vs +12.82%. 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 23.4% for ILDR. 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 -44.6% for ILDR 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
ILDR charges 0.75% per year while QQQ charges 0.18%. On a $10,000 position that is $75 vs $18 annually, a gap of $57 per year that compounds over a long holding period. On income, ILDR currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
ILDR and QQQ share 21 holdings out of 162 unique holdings combined, representing a 38.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ILDR or QQQ?
ILDR has an expense ratio of 0.75% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, ILDR or QQQ?
Over the past year ILDR returned +27.52% vs +24.44% for QQQ, so ILDR leads on 1-year performance. Over the longest common window we track (5 years), ILDR annualized +12.82% vs +12.99% for QQQ. Past performance does not guarantee future results.
Which is riskier, ILDR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 23.4% for ILDR. Worst drawdown: ILDR -44.6% vs QQQ -83.0%.
Should I hold both ILDR and QQQ?
ILDR and QQQ have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between ILDR and QQQ?
ILDR and QQQ share 21 common holdings with a 38.1% weight overlap. Combined, they hold 162 unique securities.
Which pays a higher dividend, ILDR or QQQ?
ILDR yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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