QQQ vs QTEC
Invesco QQQ Trust, Series 1 vs First Trust NASDAQ-100-Technology Sector Index Fund
Which is better, QQQ or QTEC?
Each has led over a different period.
QQQ has a lower expense ratio. QQQ led over 5Y and the full window, QTEC over 1Y and 3Y. The two have moved almost in lockstep, correlation 0.94. QTEC is less concentrated, with 26.7% of the fund in its ten largest positions against 46.5%.
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 | QQQ | QTEC |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.55% |
| AUM | $486.1B | $4.7B |
| Dividend Yield | 0.44% | 0.01% |
| Holdings | 107 | 96 |
| YTD Return | +17.44% | +34.46%Best |
| 1Y Return | +24.69% | +43.87%Best |
| 3Y Return (annualized) | +24.76% | +26.94%Best |
| 5Y Return (annualized) | +14.22%Best | +13.38% |
| Volatility (annualized) | 18.6%Best | 22.3% |
| Max Drawdown | -53.5%Best | -58.9% |
| $10,000 over 5 years | $19,441Best | $18,736 |
| Top 10 Weight | 46.5% | 26.7%Best |
| Fund Family | Invesco (US) | First Trust Portfolios (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Mar 10, 1999 | Apr 19, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Apr 25, 2006 to Sep 8, 2026 (20.4 years).
QQQ vs QTEC 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 20.4 years both funds cover.
QQQ vs QTEC Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and First Trust NASDAQ-100-Technology Sector Index Fund (QTEC) is an ETF from First Trust Portfolios (US). Over the past year QQQ returned +24.69% while QTEC returned +43.87%. Year to date, QQQ is up 17.44% versus a gain of 34.46% for QTEC.
Over three years, QQQ compounded at +24.76% per year against +26.94% for QTEC; over five years the annualized figures are +14.22% and +13.38% respectively. Across the full 20-year window we track, QQQ has the edge at +15.16% annualized vs +14.58%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QTEC has been the more volatile fund, with annualized monthly volatility of 22.3% compared with 18.6% for QQQ. 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 -53.5% for QQQ and -58.9% for QTEC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 0.44% against 0.01% for QTEC.
Holdings Overlap
65.8% of QQQ's money is in holdings QTEC also owns. 97.9% of QTEC's money is in holdings QQQ also owns.
Most of QTEC is already inside QQQ. Owning both mostly buys the same companies twice.
46 positions in common, counted across the 102 positions we hold weights for in QQQ and 47 in QTEC, against full books of 107 and 96.
What only one of them owns
Our book lists 0 positions for QTEC that do not appear in our book for QQQ (0.0% of the fund), and 54 for QQQ that do not appear in QTEC (33.6%).
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.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in QTEC | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 8.44% | 2.31% | 6.13% |
| AAPLApple Inc Ord | 7.27% | 2.22% | 5.05% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 5.76% | 2.41% | 3.35% |
| MUMicron Technology, Inc. | 4.43% | 2.05% | 2.38% |
| AMDAdvanced Micro Devices Inc | 3.45% | 2.08% | 1.37% |
| AVGOBroadcom Inc | 3.16% | 2.08% | 1.08% |
| METAMeta Platform Inc | 2.78% | 2.07% | 0.71% |
| AMATApplied Materials, Inc. | 1.86% | 2.64% | 0.78% |
| GOOGL Alphabet Inc. Class A | 3.36% | 1.06% | 2.30% |
| GOOGAlphabet, Inc., Class C | 3.13% | 1.06% | 2.07% |
97.9% of QTEC is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $37 a year on a $10,000 investment.
Which performed better, QQQ or QTEC?
Over the past year QQQ returned +24.69% vs +43.87% for QTEC, so QTEC leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +15.16% vs +14.58% for QTEC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or QTEC?
QTEC has been the more volatile fund at 22.3% annualized versus 18.6% for QQQ. Worst drawdown: QQQ -53.5% 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. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between QQQ and QTEC?
97.9% of QTEC's money is in holdings QQQ also owns. 97.9% of QTEC's is in holdings QQQ also owns. They hold 46 positions in common, counted across the 102 positions we hold weights for in QQQ and 47 in QTEC.
Which pays a higher dividend, QQQ or QTEC?
QQQ yields 0.44% while QTEC yields 0.01%, so QQQ currently pays the higher dividend yield.
Is QTEC better than QQQ?
QQQ has a lower expense ratio. QQQ led over 5Y and the full window, QTEC over 1Y and 3Y. The two have moved almost in lockstep, correlation 0.94. QTEC is less concentrated, with 26.7% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.