INCE vs QQQ
Franklin Income Equity Focus 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 108 holdings.
Side-by-Side Comparison
| Metric | INCE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.18% | |
| AUM | $282M | $496.3B | |
| Dividend Yield | 4.86% | 0.44% | |
| Holdings | 97 | 108 | |
| YTD Return | +16.29% | +16.23% | |
| 1Y Return | +23.16% | +26.23% | |
| 3Y Return (annualized) | +17.40% | +25.75% | |
| 5Y Return (annualized) | +10.71% | +14.78% | |
| Volatility (annualized) | 13.8% | 30.6% | |
| Max Drawdown | -34.1% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2016 | Mar 10, 1999 |
INCE vs QQQ Performance
Franklin Income Equity Focus ETF (INCE) is a ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year INCE returned +23.16% while QQQ returned +26.23%. Year to date, INCE is up 16.29% versus a gain of 16.23% for QQQ.
Over three years, INCE compounded at +17.40% per year against +25.75% for QQQ; over five years the annualized figures are +10.71% and +14.78% respectively. Across the full 10-year window we track, QQQ has the edge at +13.02% annualized vs +12.52%. 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 13.8% for INCE. 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 -34.1% for INCE 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
INCE charges 0.29% per year while QQQ charges 0.18%. On a $10,000 position that is $29 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, INCE currently yields 4.86% against 0.44% for QQQ.
Holdings Overlap
INCE and QQQ share 7 holdings out of 154 unique holdings combined, representing a 4.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, INCE or QQQ?
INCE has an expense ratio of 0.29% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, INCE or QQQ?
Over the past year INCE returned +23.16% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), INCE annualized +12.52% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, INCE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.8% for INCE. Worst drawdown: INCE -34.1% vs QQQ -83.0%.
Should I hold both INCE and QQQ?
INCE and QQQ have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between INCE and QQQ?
INCE and QQQ share 7 common holdings with a 4.2% weight overlap. Combined, they hold 154 unique securities.
Which pays a higher dividend, INCE or QQQ?
INCE yields 4.86% while QQQ yields 0.44%, so INCE currently pays the higher dividend yield.
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