DEED vs QQQ
DEED vs QQQ
First Trust Securitized Plus 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 | DEED | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.66% | 0.18% | |
| AUM | $68M | $455.8B | |
| Dividend Yield | 4.60% | 0.41% | |
| Holdings | 116 | 108 | |
| YTD Return | +0.56% | +18.20% | |
| 1Y Return | +4.36% | +27.63% | |
| 3Y Return (annualized) | +5.49% | +25.54% | |
| 5Y Return (annualized) | +0.15% | +15.12% | |
| Volatility (annualized) | 7.0% | 30.6% | |
| Max Drawdown | -20.0% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 29, 2020 | Mar 10, 1999 |
DEED vs QQQ Performance
First Trust Securitized Plus ETF (DEED) 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 DEED returned +4.36% while QQQ returned +27.63%. Year to date, DEED is up 0.56% versus a gain of 18.20% for QQQ.
Over three years, DEED compounded at +5.49% per year against +25.54% for QQQ; over five years the annualized figures are +0.15% and +15.12% respectively. Across the full 6-year window we track, QQQ has the edge at +13.11% annualized vs +0.88%. 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 7.0% for DEED. 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 -20.0% for DEED 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DEED charges 0.66% per year while QQQ charges 0.18%. On a $10,000 position that is $66 vs $18 annually, a gap of $48 per year that compounds over a long holding period. On income, DEED currently yields 4.60% against 0.41% for QQQ.
Holdings Overlap
DEED and QQQ share 0 holdings out of 133 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, DEED or QQQ?
DEED has an expense ratio of 0.66% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $48 per year of difference.
Which performed better, DEED or QQQ?
Over the past year DEED returned +4.36% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), DEED annualized +0.88% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, DEED or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 7.0% for DEED. Worst drawdown: DEED -20.0% vs QQQ -83.0%.
Should I hold both DEED and QQQ?
DEED and QQQ have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DEED and QQQ?
DEED and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 133 unique securities.
Which pays a higher dividend, DEED or QQQ?
DEED yields 4.60% while QQQ yields 0.41%, so DEED currently pays the higher dividend yield.
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