QQQ vs YDEC

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQYDECWinner
Expense Ratio0.18%0.90%
AUM$455.8B$162M
Dividend Yield0.41%0.00%
Holdings1085
YTD Return+18.31%+7.38%
1Y Return+25.37%+11.19%
3Y Return (annualized)+25.79%+8.99%
5Y Return (annualized)+15.20%+5.26%
Volatility (annualized)30.6%11.0%
Max Drawdown-83.0%-23.3%
Fund FamilyInvesco (US)First Trust Portfolios (US)
CategoryEquityAlternative
InceptionMar 10, 1999Dec 18, 2020

QQQ vs YDEC Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and FT Vest International Equity Moderate Buffer ETF - December (YDEC) is a ETF from First Trust Portfolios (US). Over the past year QQQ returned +25.37% while YDEC returned +11.19%. Year to date, QQQ is up 18.31% versus a gain of 7.38% for YDEC.

Over three years, QQQ compounded at +25.79% per year against +8.99% for YDEC; over five years the annualized figures are +15.20% and +5.26% respectively. Across the full 6-year window we track, QQQ has the edge at +13.10% annualized vs +6.28%. 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 11.0% for YDEC. 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 -23.3% for YDEC. 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 YDEC 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 YDEC.

Holdings Overlap

0.0%overlap

QQQ and YDEC 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 YDEC?

QQQ has an expense ratio of 0.18% while YDEC 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 YDEC?

Over the past year QQQ returned +25.37% vs +11.19% for YDEC, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), QQQ annualized +13.10% vs +6.28% for YDEC. Past performance does not guarantee future results.

Which is riskier, QQQ or YDEC?

QQQ has been the more volatile fund at 30.6% annualized versus 11.0% for YDEC. Worst drawdown: QQQ -83.0% vs YDEC -23.3%.

Should I hold both QQQ and YDEC?

QQQ and YDEC 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 YDEC?

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

Which pays a higher dividend, QQQ or YDEC?

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

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