CAAA vs QQQ
CAAA vs QQQ
First Trust AAA CMBS ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | CAAA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.18% | |
| AUM | $35M | $455.8B | |
| Dividend Yield | 5.29% | 0.41% | |
| Holdings | 105 | 108 | |
| YTD Return | +0.96% | +16.83% | |
| 1Y Return | +3.06% | +26.58% | |
| 3Y Return (annualized) | - | +24.70% | |
| 5Y Return (annualized) | - | +14.88% | |
| Volatility (annualized) | 3.0% | 30.6% | |
| Max Drawdown | -2.2% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 27, 2024 | Mar 10, 1999 |
CAAA vs QQQ Performance
First Trust AAA CMBS ETF (CAAA) 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 CAAA returned +3.06% while QQQ returned +26.58%. Year to date, CAAA is up 0.96% versus a gain of 16.83% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.0% for CAAA. 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 -2.2% for CAAA 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CAAA charges 0.30% per year while QQQ charges 0.18%. On a $10,000 position that is $30 vs $18 annually, a gap of $12 per year that compounds over a long holding period. On income, CAAA currently yields 5.29% against 0.41% for QQQ.
Holdings Overlap
CAAA and QQQ share 0 holdings out of 151 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, CAAA or QQQ?
CAAA has an expense ratio of 0.30% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, CAAA or QQQ?
Over the past year CAAA returned +3.06% vs +26.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), CAAA annualized +5.37% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, CAAA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.0% for CAAA. Worst drawdown: CAAA -2.2% vs QQQ -83.0%.
Should I hold both CAAA and QQQ?
CAAA and QQQ have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CAAA and QQQ?
CAAA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 151 unique securities.
Which pays a higher dividend, CAAA or QQQ?
CAAA yields 5.29% while QQQ yields 0.41%, so CAAA currently pays the higher dividend yield.
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