FTCB vs QQQ
FTCB vs QQQ
First Trust Core Investment Grade ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FTCB offers more diversification with 331 holdings.
Side-by-Side Comparison
| Metric | FTCB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.18% | |
| AUM | $2.5B | $455.8B | |
| Dividend Yield | 5.24% | 0.41% | |
| Holdings | 721 | 108 | |
| YTD Return | +0.22% | +18.34% | |
| 1Y Return | +2.53% | +28.94% | |
| 3Y Return (annualized) | - | +25.28% | |
| 5Y Return (annualized) | - | +15.22% | |
| Volatility (annualized) | 5.1% | 30.6% | |
| Max Drawdown | -5.0% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 7, 2023 | Mar 10, 1999 |
FTCB vs QQQ Performance
First Trust Core Investment Grade ETF (FTCB) 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 FTCB returned +2.53% while QQQ returned +28.94%. Year to date, FTCB is up 0.22% versus a gain of 18.34% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 5.1% for FTCB. 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 -5.0% for FTCB 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
FTCB charges 0.56% per year while QQQ charges 0.18%. On a $10,000 position that is $56 vs $18 annually, a gap of $38 per year that compounds over a long holding period. On income, FTCB currently yields 5.24% against 0.41% for QQQ.
Holdings Overlap
FTCB and QQQ share 0 holdings out of 434 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, FTCB or QQQ?
FTCB has an expense ratio of 0.56% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $38 per year of difference.
Which performed better, FTCB or QQQ?
Over the past year FTCB returned +2.53% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), FTCB annualized +5.83% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, FTCB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.1% for FTCB. Worst drawdown: FTCB -5.0% vs QQQ -83.0%.
Should I hold both FTCB and QQQ?
FTCB 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 FTCB and QQQ?
FTCB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 434 unique securities.
Which pays a higher dividend, FTCB or QQQ?
FTCB yields 5.24% while QQQ yields 0.41%, so FTCB currently pays the higher dividend yield.
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