ISHP vs QQQ
First Trust S-Network E-Commerce 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 | ISHP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $6M | $496.3B | |
| Dividend Yield | 1.14% | 0.44% | |
| Holdings | 66 | 108 | |
| YTD Return | -6.59% | +16.23% | |
| 1Y Return | -9.00% | +26.23% | |
| 3Y Return (annualized) | +13.21% | +25.75% | |
| 5Y Return (annualized) | +2.88% | +14.78% | |
| Volatility (annualized) | 20.6% | 30.6% | |
| Max Drawdown | -42.7% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2016 | Mar 10, 1999 |
ISHP vs QQQ Performance
First Trust S-Network E-Commerce ETF (ISHP) 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 ISHP returned -9.00% while QQQ returned +26.23%. Year to date, ISHP is down 6.59% versus a gain of 16.23% for QQQ.
Over three years, ISHP compounded at +13.21% per year against +25.75% for QQQ; over five years the annualized figures are +2.88% and +14.78% respectively. Across the full 10-year window we track, QQQ has the edge at +13.02% annualized vs +7.03%. 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 20.6% for ISHP. 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 -42.7% for ISHP 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ISHP charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, ISHP currently yields 1.14% against 0.44% for QQQ.
Holdings Overlap
ISHP and QQQ share 12 holdings out of 150 unique holdings combined, representing a 9.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ISHP or QQQ?
ISHP has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, ISHP or QQQ?
Over the past year ISHP returned -9.00% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), ISHP annualized +7.03% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, ISHP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.6% for ISHP. Worst drawdown: ISHP -42.7% vs QQQ -83.0%.
Should I hold both ISHP and QQQ?
ISHP and QQQ have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ISHP and QQQ?
ISHP and QQQ share 12 common holdings with a 9.5% weight overlap. Combined, they hold 150 unique securities.
Which pays a higher dividend, ISHP or QQQ?
ISHP yields 1.14% while QQQ yields 0.44%, so ISHP currently pays the higher dividend yield.
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