QQQ vs SKYY
Invesco QQQ Trust, Series 1 vs First Trust Cloud Computing ETF
Quick Verdict
QQQ has a lower expense ratio. SKYY delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SKYY | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.60% | |
| AUM | $496.3B | $3.4B | |
| Dividend Yield | 0.44% | 0.00% | |
| Holdings | 108 | 64 | |
| YTD Return | +16.64% | +26.19% | |
| 1Y Return | +27.27% | +35.54% | |
| 3Y Return (annualized) | +25.96% | +28.20% | |
| 5Y Return (annualized) | +14.54% | +8.87% | |
| Volatility (annualized) | 30.6% | 21.5% | |
| Max Drawdown | -83.0% | -53.2% | |
| Fund Family | Invesco (US) | First Trust Portfolios (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jul 6, 2011 |
QQQ vs SKYY Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and First Trust Cloud Computing ETF (SKYY) is a ETF from First Trust Portfolios (US). Over the past year QQQ returned +27.27% while SKYY returned +35.54%. Year to date, QQQ is up 16.64% versus a gain of 26.19% for SKYY.
Over three years, QQQ compounded at +25.96% per year against +28.20% for SKYY; over five years the annualized figures are +14.54% and +8.87% respectively. Across the full 15-year window we track, SKYY has the edge at +14.99% annualized vs +13.03%. 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 21.5% for SKYY. 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 -53.2% for SKYY. 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while SKYY charges 0.60%. On a $10,000 position that is $18 vs $60 annually, a gap of $42 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.00% for SKYY.
Holdings Overlap
QQQ and SKYY share 13 holdings out of 152 unique holdings combined, representing a 16.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SKYY?
QQQ has an expense ratio of 0.18% while SKYY charges 0.60%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, QQQ or SKYY?
Over the past year QQQ returned +27.27% vs +35.54% for SKYY, so SKYY leads on 1-year performance. Over the longest common window we track (15 years), QQQ annualized +13.03% vs +14.99% for SKYY. Past performance does not guarantee future results.
Which is riskier, QQQ or SKYY?
QQQ has been the more volatile fund at 30.6% annualized versus 21.5% for SKYY. Worst drawdown: QQQ -83.0% vs SKYY -53.2%.
Should I hold both QQQ and SKYY?
QQQ and SKYY have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SKYY?
QQQ and SKYY share 13 common holdings with a 16.9% weight overlap. Combined, they hold 152 unique securities.
Which pays a higher dividend, QQQ or SKYY?
QQQ yields 0.44% while SKYY yields 0.00%, so QQQ currently pays the higher dividend yield.
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