QQQ vs SFEB

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQSFEBWinner
Expense Ratio0.18%0.90%
AUM$455.8B$127M
Dividend Yield0.41%0.00%
Holdings1085
YTD Return+19.68%+12.60%
1Y Return+26.75%+19.98%
3Y Return (annualized)+26.25%-
5Y Return (annualized)+15.39%-
Volatility (annualized)30.6%9.7%
Max Drawdown-83.0%-16.7%
Fund FamilyInvesco (US)First Trust Portfolios (US)
CategoryEquityAlternative
InceptionMar 10, 1999Feb 20, 2024

QQQ vs SFEB Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and FT Vest US Small Cap Moderate Buffer ETF - February (SFEB) is a ETF from First Trust Portfolios (US). Over the past year QQQ returned +26.75% while SFEB returned +19.98%. Year to date, QQQ is up 19.68% versus a gain of 12.60% for SFEB.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 9.7% for SFEB. 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 -16.7% for SFEB. 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while SFEB charges 0.90%. On a $10,000 position that is $18 vs $90 annually, a gap of $72 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.00% for SFEB.

Holdings Overlap

0.0%overlap

QQQ and SFEB share 0 holdings out of 104 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, QQQ or SFEB?

QQQ has an expense ratio of 0.18% while SFEB charges 0.90%. QQQ is the cheaper option. On a $10,000 investment, that is $72 per year of difference.

Which performed better, QQQ or SFEB?

Over the past year QQQ returned +26.75% vs +19.98% for SFEB, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.15% vs +13.06% for SFEB. Past performance does not guarantee future results.

Which is riskier, QQQ or SFEB?

QQQ has been the more volatile fund at 30.6% annualized versus 9.7% for SFEB. Worst drawdown: QQQ -83.0% vs SFEB -16.7%.

Should I hold both QQQ and SFEB?

QQQ and SFEB have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and SFEB?

QQQ and SFEB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.

Which pays a higher dividend, QQQ or SFEB?

QQQ yields 0.41% while SFEB yields 0.00%, so QQQ currently pays the higher dividend yield.

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