LALT vs QQQ
First Trust Multi-Strategy Alternative ETF vs Invesco QQQ Trust, Series 1
Which is better, LALT or QQQ?
Multi Alternative 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 | LALT | QQQ |
|---|---|---|
| Expense Ratio | 1.18% | 0.18%Best |
| AUM | $345M | $483.5B |
| Dividend Yield | 3.70% | 0.44% |
| Holdings | 16 | 107 |
| YTD Return | +11.09% | +15.21%Best |
| 1Y Return | +14.21% | +19.78%Best |
| 3Y Return (annualized) | +9.71% | +24.58%Best |
| 5Y Return (annualized) | - | +13.93% |
| Volatility (annualized) | 4.6%Best | 17.4% |
| Max Drawdown | -7.0%Best | -22.8% |
| $10,000 over 3.6 years | $13,498 | $23,770Best |
| Top 10 Weight | - | 46.5% |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Alternative | Equity |
| Style | Multi Alternative | Large Cap Growth |
| Inception | Jan 31, 2023 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 3.6 years row, are measured over the window both funds cover: Feb 1, 2023 to Sep 16, 2026 (3.6 years).
LALT 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 3.6 years both funds cover.
LALT vs QQQ Performance
First Trust Multi-Strategy Alternative ETF (LALT) is an ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year LALT returned +14.21% while QQQ returned +19.78%. Year to date, LALT is up 11.09% versus a gain of 15.21% for QQQ.
Over three years, LALT compounded at +9.71% per year against +24.58% for QQQ. Across the full 4-year window we track, QQQ has the edge at +27.19% annualized vs +8.69%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.4% compared with 4.6% for LALT. 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 -7.0% for LALT 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 0.20. They move largely independently of each other.
Fees and Cost Over Time
LALT charges 1.18% per year while QQQ charges 0.18%. On a $10,000 position that is $118 vs $18 annually, a gap of $100 per year that compounds over a long holding period. On income, LALT currently yields 3.70% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 7 holdings in LALT and 102 in QQQ, totalling 99.9% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 7 positions we hold weights for in LALT and 102 in QQQ, against full books of 16 and 107.
What only one of them owns
Our book lists 96 positions for QQQ that do not appear in our book for LALT (97.5% of the fund), and 7 for LALT that do not appear in QQQ (99.9%).
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.
You are not choosing between two funds in isolation.
Whichever of LALT 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, LALT or QQQ?
LALT has an expense ratio of 1.18% while QQQ charges 0.18%. QQQ is the cheaper option, by $100 a year on a $10,000 investment.
Which performed better, LALT or QQQ?
Over the past year LALT returned +14.21% vs +19.78% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), LALT annualized +8.69% vs +27.19% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, LALT or QQQ?
QQQ has been the more volatile fund at 17.4% annualized versus 4.6% for LALT. Worst drawdown: LALT -7.0% vs QQQ -22.8%.
Should I hold both LALT and QQQ?
LALT and QQQ have a monthly-return correlation of 0.20, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, LALT or QQQ?
LALT yields 3.70% while QQQ yields 0.44%, so LALT currently pays the higher dividend yield.
Is QQQ better than LALT?
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.