QQQ vs TDIV
Invesco QQQ Trust, Series 1 vs First Trust NASDAQ Technology Dividend Index Fund
Quick Verdict
QQQ has a lower expense ratio. TDIV delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | TDIV | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.50% | |
| AUM | $455.8B | $4.1B | |
| Dividend Yield | 0.41% | 1.14% | |
| Holdings | 108 | 96 | |
| YTD Return | +19.68% | +22.27% | |
| 1Y Return | +26.75% | +29.21% | |
| 3Y Return (annualized) | +26.25% | +28.53% | |
| 5Y Return (annualized) | +15.39% | +17.26% | |
| Volatility (annualized) | 30.6% | 17.0% | |
| Max Drawdown | -83.0% | -32.0% | |
| Fund Family | Invesco (US) | First Trust Portfolios (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Aug 13, 2012 |
QQQ vs TDIV Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and First Trust NASDAQ Technology Dividend Index Fund (TDIV) is a ETF from First Trust Portfolios (US). Over the past year QQQ returned +26.75% while TDIV returned +29.21%. Year to date, QQQ is up 19.68% versus a gain of 22.27% for TDIV.
Over three years, QQQ compounded at +26.25% per year against +28.53% for TDIV; over five years the annualized figures are +15.39% and +17.26% respectively. Across the full 14-year window we track, TDIV has the edge at +14.37% annualized vs +13.15%. 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 17.0% for TDIV. 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 -32.0% for TDIV. 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while TDIV charges 0.50%. On a $10,000 position that is $18 vs $50 annually, a gap of $32 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 1.14% for TDIV.
Holdings Overlap
QQQ and TDIV share 17 holdings out of 180 unique holdings combined, representing a 19.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or TDIV?
QQQ has an expense ratio of 0.18% while TDIV charges 0.50%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, QQQ or TDIV?
Over the past year QQQ returned +26.75% vs +29.21% for TDIV, so TDIV leads on 1-year performance. Over the longest common window we track (14 years), QQQ annualized +13.15% vs +14.37% for TDIV. Past performance does not guarantee future results.
Which is riskier, QQQ or TDIV?
QQQ has been the more volatile fund at 30.6% annualized versus 17.0% for TDIV. Worst drawdown: QQQ -83.0% vs TDIV -32.0%.
Should I hold both QQQ and TDIV?
QQQ and TDIV have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TDIV?
QQQ and TDIV share 17 common holdings with a 19.3% weight overlap. Combined, they hold 180 unique securities.
Which pays a higher dividend, QQQ or TDIV?
QQQ yields 0.41% while TDIV yields 1.14%, so TDIV currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.