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. QQQ led over 1Y, 3Y and the full window.
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 | $1.8B | $483.5B |
| Dividend Yield | 5.18% | 0.44% |
| Holdings | 381 | 107 |
| YTD Return | +7.44% | +15.18%Best |
| 1Y Return | +11.07% | +19.65%Best |
| 3Y Return (annualized) | +11.38% | +24.60%Best |
| 5Y Return (annualized) | - | +13.94% |
| Volatility (annualized) | 7.2%Best | 17.3% |
| Max Drawdown | -7.8%Best | -22.8% |
| $10,000 over 3.3 years | $13,869 | $20,451Best |
| 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 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 3.3 years row, are measured over the window both funds cover: Jun 8, 2023 to Sep 15, 2026 (3.3 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 3.3 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 +11.07% while QQQ returned +19.65%. Year to date, INCM is up 7.44% versus a gain of 15.18% for QQQ.
Over three years, INCM compounded at +11.38% per year against +24.60% 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 17.3% compared with 7.2% 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 0.50. 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 5.18% against 0.44% for QQQ.
Holdings Overlap
At least 17.6% of QQQ's money is in holdings INCM also owns.
Stated as a floor: for INCM, our book for it covers 58.0% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
QQQ and INCM share little of their money.
9 positions in common, counted across the 257 positions we hold weights for in INCM and 102 in QQQ, against full books of 381 and 107.
Top Shared Holdings
| Stock | Weight in INCM | Weight in QQQ | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 0.21% | 5.76% | 5.55% |
| AMZNAmazon.Com Inc | 0.19% | 4.67% | 4.48% |
| INTCIntel Corporation | 0.36% | 2.23% | 1.87% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.45% | 2.10% | 1.65% |
| PEPPepsico Inc. | 1.21% | 0.83% | 0.38% |
| TXNTexas Instrument Inc | 0.48% | 1.12% | 0.64% |
| MCHPMicrochip Technology Inc. | 0.47% | 0.19% | 0.28% |
| SBUXStarbucks Corp | 0.12% | 0.53% | 0.41% |
| XELXcel Energy Inc. | 0.30% | 0.21% | 0.09% |
You are not choosing between two funds in isolation.
Whichever of INCM and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
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 +11.07% vs +19.65% for QQQ, so QQQ 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 17.3% annualized versus 7.2% 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 0.50, 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?
At least 17.6% of QQQ's money is in holdings INCM also owns. Our book for INCM is partial, so the real figure is this or higher. They hold 9 positions in common, counted across the 257 positions we hold weights for in INCM and 102 in QQQ.
Which pays a higher dividend, INCM or QQQ?
INCM yields 5.18% while QQQ yields 0.44%, so INCM currently pays the higher dividend yield.
Is QQQ better than INCM?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.