FTHI vs QQQ
FTHI vs QQQ
First Trust BuyWrite Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FTHI offers more diversification with 168 holdings.
Side-by-Side Comparison
| Metric | FTHI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.18% | |
| AUM | $2.4B | $455.8B | |
| Dividend Yield | 8.76% | 0.41% | |
| Holdings | 208 | 108 | |
| YTD Return | +5.91% | +16.83% | |
| 1Y Return | +11.96% | +26.58% | |
| 3Y Return (annualized) | +13.51% | +24.70% | |
| 5Y Return (annualized) | +10.98% | +14.88% | |
| Volatility (annualized) | 11.5% | 30.6% | |
| Max Drawdown | -35.5% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 6, 2014 | Mar 10, 1999 |
FTHI vs QQQ Performance
First Trust BuyWrite Income ETF (FTHI) 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 FTHI returned +11.96% while QQQ returned +26.58%. Year to date, FTHI is up 5.91% versus a gain of 16.83% for QQQ.
Over three years, FTHI compounded at +13.51% per year against +24.70% for QQQ; over five years the annualized figures are +10.98% and +14.88% respectively. Across the full 13-year window we track, QQQ has the edge at +13.06% annualized vs +4.98%. 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 11.5% for FTHI. 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 -35.5% for FTHI 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTHI charges 0.76% per year while QQQ charges 0.18%. On a $10,000 position that is $76 vs $18 annually, a gap of $58 per year that compounds over a long holding period. On income, FTHI currently yields 8.76% against 0.41% for QQQ.
Holdings Overlap
FTHI and QQQ share 26 holdings out of 245 unique holdings combined, representing a 35.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FTHI | Weight in QQQ | Difference |
|---|---|---|---|
| AAPL | 8.10% | 7.46% | 0.64% |
| NVDA | 5.63% | 7.88% | 2.25% |
| MSFT | 1.92% | 4.65% | 2.73% |
| AMZN | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| COST | Pro | Pro | Pro |
See all 10 holdings FTHI 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, FTHI or QQQ?
FTHI has an expense ratio of 0.76% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $58 per year of difference.
Which performed better, FTHI or QQQ?
Over the past year FTHI returned +11.96% vs +26.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), FTHI annualized +4.98% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, FTHI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.5% for FTHI. Worst drawdown: FTHI -35.5% vs QQQ -83.0%.
Should I hold both FTHI and QQQ?
FTHI and QQQ have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTHI and QQQ?
FTHI and QQQ share 26 common holdings with a 35.3% weight overlap. Combined, they hold 245 unique securities.
Which pays a higher dividend, FTHI or QQQ?
FTHI yields 8.76% while QQQ yields 0.41%, so FTHI currently pays the higher dividend yield.
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