AFLG vs QQQ
AFLG vs QQQ
First Trust Active Factor Large Cap ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. AFLG offers more diversification with 215 holdings.
Side-by-Side Comparison
| Metric | AFLG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.18% | |
| AUM | $702M | $455.8B | |
| Dividend Yield | 0.70% | 0.41% | |
| Holdings | 219 | 108 | |
| YTD Return | +15.26% | +18.34% | |
| 1Y Return | +23.44% | +28.94% | |
| 3Y Return (annualized) | +21.63% | +25.28% | |
| 5Y Return (annualized) | +12.86% | +15.22% | |
| Volatility (annualized) | 16.8% | 30.6% | |
| Max Drawdown | -35.8% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 4, 2019 | Mar 10, 1999 |
AFLG vs QQQ Performance
First Trust Active Factor Large Cap ETF (AFLG) is a ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AFLG returned +23.44% while QQQ returned +28.94%. Year to date, AFLG is up 15.26% versus a gain of 18.34% for QQQ.
Over three years, AFLG compounded at +21.63% per year against +25.28% for QQQ; over five years the annualized figures are +12.86% and +15.22% respectively. Across the full 7-year window we track, AFLG has the edge at +14.00% annualized vs +13.12%. 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 16.8% for AFLG. 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 -35.8% for AFLG and -83.0% for QQQ. 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AFLG charges 0.55% per year while QQQ charges 0.18%. On a $10,000 position that is $55 vs $18 annually, a gap of $37 per year that compounds over a long holding period. On income, AFLG currently yields 0.70% against 0.41% for QQQ.
Holdings Overlap
AFLG and QQQ share 38 holdings out of 280 unique holdings combined, representing a 37.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in AFLG | Weight in QQQ | Difference |
|---|---|---|---|
| NVDA | 7.57% | 7.88% | 0.31% |
| AAPL | 6.83% | 7.46% | 0.63% |
| GOOGL | 5.51% | 3.29% | 2.22% |
| MSFT | Pro | Pro | Pro |
| AMZN | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| TSLA | Pro | Pro | Pro |
See all 10 holdings AFLG shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, AFLG or QQQ?
AFLG has an expense ratio of 0.55% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, AFLG or QQQ?
Over the past year AFLG returned +23.44% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), AFLG annualized +14.00% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, AFLG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.8% for AFLG. Worst drawdown: AFLG -35.8% vs QQQ -83.0%.
Should I hold both AFLG and QQQ?
AFLG and QQQ have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AFLG and QQQ?
AFLG and QQQ share 38 common holdings with a 37.3% weight overlap. Combined, they hold 280 unique securities.
Which pays a higher dividend, AFLG or QQQ?
AFLG yields 0.70% while QQQ yields 0.41%, so AFLG currently pays the higher dividend yield.
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