KNGZ vs QQQ
First Trust S&P 500 Diversified Dividend Aristocrats 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 | KNGZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $67M | $496.3B | |
| Dividend Yield | 2.52% | 0.44% | |
| Holdings | 99 | 108 | |
| YTD Return | +20.29% | +16.30% | |
| 1Y Return | +24.40% | +24.83% | |
| 3Y Return (annualized) | +17.52% | +25.48% | |
| 5Y Return (annualized) | +10.41% | +14.50% | |
| Volatility (annualized) | 17.1% | 30.6% | |
| Max Drawdown | -37.5% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 20, 2017 | Mar 10, 1999 |
KNGZ vs QQQ Performance
First Trust S&P 500 Diversified Dividend Aristocrats ETF (KNGZ) 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 KNGZ returned +24.40% while QQQ returned +24.83%. Year to date, KNGZ is up 20.29% versus a gain of 16.30% for QQQ.
Over three years, KNGZ compounded at +17.52% per year against +25.48% for QQQ; over five years the annualized figures are +10.41% and +14.50% respectively. Across the full 9-year window we track, QQQ has the edge at +13.01% annualized vs +10.37%. 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 17.1% for KNGZ. 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 -37.5% for KNGZ 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KNGZ charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, KNGZ currently yields 2.52% against 0.44% for QQQ.
Holdings Overlap
KNGZ and QQQ share 14 holdings out of 186 unique holdings combined, representing a 8.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KNGZ or QQQ?
KNGZ has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, KNGZ or QQQ?
Over the past year KNGZ returned +24.40% vs +24.83% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), KNGZ annualized +10.37% vs +13.01% for QQQ. Past performance does not guarantee future results.
Which is riskier, KNGZ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.1% for KNGZ. Worst drawdown: KNGZ -37.5% vs QQQ -83.0%.
Should I hold both KNGZ and QQQ?
KNGZ and QQQ have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KNGZ and QQQ?
KNGZ and QQQ share 14 common holdings with a 8.4% weight overlap. Combined, they hold 186 unique securities.
Which pays a higher dividend, KNGZ or QQQ?
KNGZ yields 2.52% while QQQ yields 0.44%, so KNGZ currently pays the higher dividend yield.
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