INCM vs QQQ
Franklin Income Focus ETF vs Invesco QQQ Trust, Series 1
Which is better, INCM or QQQ?
Allocation/Balanced against Large Cap Growth.
QQQ has a lower expense ratio. INCM led over 1Y, QQQ over 3Y and the full window. INCM is less concentrated, with 44.3% of the fund in its ten largest positions against 46.9%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | INCM | QQQ |
|---|---|---|
| Expense Ratio | 0.38% | 0.18%Best |
| AUM | $2.0B | $437.3B |
| Dividend Yield | 5.26% | 0.43% |
| Holdings | 488 | 208 |
| YTD Return | +7.82% | +10.43%Best |
| 1Y Return | +10.45%Best | +8.78% |
| 3Y Return (annualized) | +12.25% | +22.14%Best |
| 5Y Return (annualized) | - | +12.29% |
| Volatility (annualized) | 7.4%Best | 17.5% |
| Max Drawdown | -7.8%Best | -22.8% |
| $10,000 over 3.4 years | $13,844 | $19,395Best |
| Top 10 Weight | 44.3%Best | 46.9% |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) |
| Category | Allocation/Balanced | Equity |
| Style | Allocation/Balanced | Large Cap Growth |
| Inception | Jun 6, 2023 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 3.4 years row, are measured over the window both funds cover: Jun 8, 2023 to Nov 10, 2026 (3.4 years).
INCM vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3.4 years both funds cover.
INCM vs QQQ Performance
Franklin Income Focus ETF (INCM) is an ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year INCM returned +10.45% while QQQ returned +8.78%. Year to date, INCM is up 7.82% versus a gain of 10.43% for QQQ.
Over three years, INCM compounded at +12.25% per year against +22.14% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.5% compared with 7.4% for INCM. 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 -7.8% for INCM and -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.40. They move together some of the time, and apart the rest.
Fees and Cost Over Time
INCM charges 0.38% per year while QQQ charges 0.18%. On a $10,000 position that is $38 vs $18 annually, a gap of $20 per year that compounds over a long holding period. On income, INCM currently yields 5.26% against 0.43% for QQQ.
Holdings Overlap
46.2% of INCM's money is in holdings QQQ also owns. 38.4% of QQQ's money is in holdings INCM also owns.
The two portfolios partly overlap.
23 positions in common, counted across the 81 positions we hold weights for in INCM and 101 in QQQ, against full books of 488 and 208.
What only one of them owns
Our book lists 71 positions for QQQ that do not appear in our book for INCM (58.8% of the fund), and 38 for INCM that do not appear in QQQ (30.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in INCM | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.40% | 8.05% | 0.35% |
| AAPLApple Inc | 4.40% | 7.68% | 3.28% |
| AVGOBroadcom Inc | 4.32% | 2.52% | 1.80% |
| AMDAdvanced Micro Devices Inc | 2.73% | 3.90% | 1.17% |
| TSLATesla Inc | 2.10% | 2.93% | 0.83% |
| SNDKVSandisk Corp. | 4.15% | 0.87% | 3.28% |
| GOOGLAlphabet Inc | 1.25% | 3.15% | 1.90% |
| LRCXLam Research Corporation | 2.32% | 1.47% | 0.85% |
| AMATApplied Material | 1.83% | 1.45% | 0.38% |
| KLACKla Corp. | 1.96% | 0.97% | 0.99% |
46.2% of INCM is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, INCM or QQQ?
INCM has an expense ratio of 0.38% while QQQ charges 0.18%. QQQ is the cheaper option, by $20 a year on a $10,000 investment.
Which performed better, INCM or QQQ?
Over the past year INCM returned +10.45% vs +8.78% for QQQ, so INCM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, INCM or QQQ?
QQQ has been the more volatile fund at 17.5% annualized versus 7.4% for INCM. Worst drawdown: INCM -7.8% vs QQQ -22.8%.
Should I hold both INCM and QQQ?
INCM and QQQ have a monthly-return correlation of 0.40, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between INCM and QQQ?
46.2% of INCM's money is in holdings QQQ also owns. 38.4% of QQQ's is in holdings INCM also owns. They hold 23 positions in common, counted across the 81 positions we hold weights for in INCM and 101 in QQQ.
Which pays a higher dividend, INCM or QQQ?
INCM yields 5.26% while QQQ yields 0.43%, so INCM currently pays the higher dividend yield.
Is QQQ better than INCM?
QQQ has a lower expense ratio. INCM led over 1Y, QQQ over 3Y and the full window. INCM is less concentrated, with 44.3% of the fund in its ten largest positions against 46.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.