NXTG vs QQQ
First Trust Indxx NextG ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. NXTG delivered stronger 1-year returns. NXTG offers more diversification with 109 holdings.
Side-by-Side Comparison
| Metric | NXTG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.18% | |
| AUM | $576M | $496.3B | |
| Dividend Yield | 1.27% | 0.44% | |
| Holdings | 109 | 108 | |
| YTD Return | +39.07% | +16.64% | |
| 1Y Return | +54.91% | +27.27% | |
| 3Y Return (annualized) | +32.64% | +25.96% | |
| 5Y Return (annualized) | +16.45% | +14.54% | |
| Volatility (annualized) | 17.3% | 30.6% | |
| Max Drawdown | -33.6% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 17, 2011 | Mar 10, 1999 |
NXTG vs QQQ Performance
First Trust Indxx NextG ETF (NXTG) 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 NXTG returned +54.91% while QQQ returned +27.27%. Year to date, NXTG is up 39.07% versus a gain of 16.64% for QQQ.
Over three years, NXTG compounded at +32.64% per year against +25.96% for QQQ; over five years the annualized figures are +16.45% and +14.54% respectively. Across the full 16-year window we track, QQQ has the edge at +13.03% annualized vs +11.91%. 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 17.3% for NXTG. 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 -33.6% for NXTG 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NXTG charges 0.70% per year while QQQ charges 0.18%. On a $10,000 position that is $70 vs $18 annually, a gap of $52 per year that compounds over a long holding period. On income, NXTG currently yields 1.27% against 0.44% for QQQ.
Holdings Overlap
NXTG and QQQ share 14 holdings out of 187 unique holdings combined, representing a 13.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NXTG or QQQ?
NXTG has an expense ratio of 0.70% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, NXTG or QQQ?
Over the past year NXTG returned +54.91% vs +27.27% for QQQ, so NXTG leads on 1-year performance. Over the longest common window we track (16 years), NXTG annualized +11.91% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, NXTG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.3% for NXTG. Worst drawdown: NXTG -33.6% vs QQQ -83.0%.
Should I hold both NXTG and QQQ?
NXTG and QQQ have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NXTG and QQQ?
NXTG and QQQ share 14 common holdings with a 13.3% weight overlap. Combined, they hold 187 unique securities.
Which pays a higher dividend, NXTG or QQQ?
NXTG yields 1.27% while QQQ yields 0.44%, so NXTG currently pays the higher dividend yield.
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