QABA vs QQQ
First Trust NASDAQ ABA Community Bank Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QABA delivered stronger 1-year returns. QABA offers more diversification with 160 holdings.
Side-by-Side Comparison
| Metric | QABA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $92M | $455.8B | |
| Dividend Yield | 2.34% | 0.41% | |
| Holdings | 147 | 108 | |
| YTD Return | +25.50% | +19.68% | |
| 1Y Return | +27.29% | +26.75% | |
| 3Y Return (annualized) | +19.48% | +26.25% | |
| 5Y Return (annualized) | +7.49% | +15.39% | |
| Volatility (annualized) | 22.5% | 30.6% | |
| Max Drawdown | -51.0% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 29, 2009 | Mar 10, 1999 |
QABA vs QQQ Performance
First Trust NASDAQ ABA Community Bank Index Fund (QABA) 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 QABA returned +27.29% while QQQ returned +26.75%. Year to date, QABA is up 25.50% versus a gain of 19.68% for QQQ.
Over three years, QABA compounded at +19.48% per year against +26.25% for QQQ; over five years the annualized figures are +7.49% and +15.39% respectively. Across the full 17-year window we track, QQQ has the edge at +13.15% annualized vs +8.42%. 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 22.5% for QABA. 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 -51.0% for QABA 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QABA 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, QABA currently yields 2.34% against 0.41% for QQQ.
Holdings Overlap
QABA and QQQ share 0 holdings out of 263 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, QABA or QQQ?
QABA 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, QABA or QQQ?
Over the past year QABA returned +27.29% vs +26.75% for QQQ, so QABA leads on 1-year performance. Over the longest common window we track (17 years), QABA annualized +8.42% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, QABA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 22.5% for QABA. Worst drawdown: QABA -51.0% vs QQQ -83.0%.
Should I hold both QABA and QQQ?
QABA and QQQ have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QABA and QQQ?
QABA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 263 unique securities.
Which pays a higher dividend, QABA or QQQ?
QABA yields 2.34% while QQQ yields 0.41%, so QABA currently pays the higher dividend yield.
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