QQQ vs QTEC
Invesco QQQ Trust, Series 1 vs First Trust NASDAQ-100-Technology Sector Index Fund
Quick Verdict
QQQ has a lower expense ratio. QTEC delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | QTEC | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.55% | |
| AUM | $455.8B | $4.5B | |
| Dividend Yield | 0.41% | 0.01% | |
| Holdings | 108 | 46 | |
| YTD Return | +18.31% | +38.08% | |
| 1Y Return | +25.37% | +48.76% | |
| 3Y Return (annualized) | +25.79% | +29.66% | |
| 5Y Return (annualized) | +15.20% | +14.65% | |
| Volatility (annualized) | 30.6% | 22.4% | |
| Max Drawdown | -83.0% | -58.9% | |
| Fund Family | Invesco (US) | First Trust Portfolios (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Apr 19, 2006 |
QQQ vs QTEC Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and First Trust NASDAQ-100-Technology Sector Index Fund (QTEC) is a ETF from First Trust Portfolios (US). Over the past year QQQ returned +25.37% while QTEC returned +48.76%. Year to date, QQQ is up 18.31% versus a gain of 38.08% for QTEC.
Over three years, QQQ compounded at +25.79% per year against +29.66% for QTEC; over five years the annualized figures are +15.20% and +14.65% respectively. Across the full 20-year window we track, QTEC has the edge at +14.79% annualized vs +13.10%. 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 22.4% for QTEC. 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 -83.0% for QQQ and -58.9% for QTEC. 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while QTEC charges 0.55%. On a $10,000 position that is $18 vs $55 annually, a gap of $37 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.01% for QTEC.
Holdings Overlap
QQQ and QTEC share 46 holdings out of 104 unique holdings combined, representing a 41.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or QTEC?
QQQ has an expense ratio of 0.18% while QTEC charges 0.55%. QQQ is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, QQQ or QTEC?
Over the past year QQQ returned +25.37% vs +48.76% for QTEC, so QTEC leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.10% vs +14.79% for QTEC. Past performance does not guarantee future results.
Which is riskier, QQQ or QTEC?
QQQ has been the more volatile fund at 30.6% annualized versus 22.4% for QTEC. Worst drawdown: QQQ -83.0% vs QTEC -58.9%.
Should I hold both QQQ and QTEC?
QQQ and QTEC have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QQQ and QTEC?
QQQ and QTEC share 46 common holdings with a 41.3% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, QQQ or QTEC?
QQQ yields 0.41% while QTEC yields 0.01%, so QQQ currently pays the higher dividend yield.
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