FMY vs QQQ
FMY vs QQQ
First Trust Mortgage Income Fund 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 | FMY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.35% | 0.18% | |
| AUM | $52M | $455.8B | |
| Dividend Yield | 6.29% | 0.41% | |
| Holdings | 166 | 108 | |
| YTD Return | -0.36% | +18.34% | |
| 1Y Return | +0.46% | +28.94% | |
| 3Y Return (annualized) | +8.52% | +25.28% | |
| 5Y Return (annualized) | +2.98% | +15.22% | |
| Volatility (annualized) | 8.8% | 30.6% | |
| Max Drawdown | -47.3% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 25, 2005 | Mar 10, 1999 |
FMY vs QQQ Performance
First Trust Mortgage Income Fund (FMY) 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 FMY returned +0.46% while QQQ returned +28.94%. Year to date, FMY is down 0.36% versus a gain of 18.34% for QQQ.
Over three years, FMY compounded at +8.52% per year against +25.28% for QQQ; over five years the annualized figures are +2.98% and +15.22% respectively. Across the full 21-year window we track, QQQ has the edge at +13.12% annualized vs -0.91%. 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 8.8% for FMY. 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 -47.3% for FMY 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMY charges 1.35% per year while QQQ charges 0.18%. On a $10,000 position that is $135 vs $18 annually, a gap of $117 per year that compounds over a long holding period. On income, FMY currently yields 6.29% against 0.41% for QQQ.
Holdings Overlap
FMY and QQQ share 0 holdings out of 132 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, FMY or QQQ?
FMY has an expense ratio of 1.35% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $117 per year of difference.
Which performed better, FMY or QQQ?
Over the past year FMY returned +0.46% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), FMY annualized -0.91% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, FMY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.8% for FMY. Worst drawdown: FMY -47.3% vs QQQ -83.0%.
Should I hold both FMY and QQQ?
FMY and QQQ have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMY and QQQ?
FMY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 132 unique securities.
Which pays a higher dividend, FMY or QQQ?
FMY yields 6.29% while QQQ yields 0.41%, so FMY 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.