NFTY vs QQQ
First Trust India Nifty 50 Equal Weight 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 103 holdings.
Side-by-Side Comparison
| Metric | NFTY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.81% | 0.18% | |
| AUM | $116M | $455.8B | |
| Dividend Yield | 1.90% | 0.41% | |
| Holdings | 52 | 108 | |
| YTD Return | -5.49% | +18.20% | |
| 1Y Return | -1.02% | +27.63% | |
| 3Y Return (annualized) | +6.17% | +25.54% | |
| 5Y Return (annualized) | +5.88% | +15.12% | |
| Volatility (annualized) | 17.9% | 30.6% | |
| Max Drawdown | -50.6% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 14, 2012 | Mar 10, 1999 |
NFTY vs QQQ Performance
First Trust India Nifty 50 Equal Weight ETF (NFTY) 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 NFTY returned -1.02% while QQQ returned +27.63%. Year to date, NFTY is down 5.49% versus a gain of 18.20% for QQQ.
Over three years, NFTY compounded at +6.17% per year against +25.54% for QQQ; over five years the annualized figures are +5.88% and +15.12% respectively. Across the full 14-year window we track, QQQ has the edge at +13.11% annualized vs +4.92%. 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 17.9% for NFTY. 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 -50.6% for NFTY 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NFTY charges 0.81% per year while QQQ charges 0.18%. On a $10,000 position that is $81 vs $18 annually, a gap of $63 per year that compounds over a long holding period. On income, NFTY currently yields 1.90% against 0.41% for QQQ.
Holdings Overlap
NFTY and QQQ share 0 holdings out of 153 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NFTY or QQQ?
NFTY has an expense ratio of 0.81% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $63 per year of difference.
Which performed better, NFTY or QQQ?
Over the past year NFTY returned -1.02% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), NFTY annualized +4.92% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, NFTY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.9% for NFTY. Worst drawdown: NFTY -50.6% vs QQQ -83.0%.
Should I hold both NFTY and QQQ?
NFTY and QQQ have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NFTY and QQQ?
NFTY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 153 unique securities.
Which pays a higher dividend, NFTY or QQQ?
NFTY yields 1.90% while QQQ yields 0.41%, so NFTY currently pays the higher dividend yield.
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