FTKI vs QQQ
FTKI vs QQQ
First Trust Small Cap BuyWrite Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FTKI offers more diversification with 144 holdings.
Side-by-Side Comparison
| Metric | FTKI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.18% | |
| AUM | $25M | $455.8B | |
| Dividend Yield | 12.53% | 0.41% | |
| Holdings | 170 | 108 | |
| YTD Return | +13.86% | +16.83% | |
| 1Y Return | +23.06% | +26.58% | |
| 3Y Return (annualized) | - | +24.70% | |
| 5Y Return (annualized) | - | +14.88% | |
| Volatility (annualized) | 10.3% | 30.6% | |
| Max Drawdown | -15.2% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 26, 2025 | Mar 10, 1999 |
FTKI vs QQQ Performance
First Trust Small Cap BuyWrite Income ETF (FTKI) 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 FTKI returned +23.06% while QQQ returned +26.58%. Year to date, FTKI is up 13.86% 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 10.3% for FTKI. 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 -15.2% for FTKI 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTKI charges 0.85% per year while QQQ charges 0.18%. On a $10,000 position that is $85 vs $18 annually, a gap of $67 per year that compounds over a long holding period. On income, FTKI currently yields 12.53% against 0.41% for QQQ.
Holdings Overlap
FTKI and QQQ share 0 holdings out of 247 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, FTKI or QQQ?
FTKI has an expense ratio of 0.85% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, FTKI or QQQ?
Over the past year FTKI returned +23.06% vs +26.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), FTKI annualized +13.31% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, FTKI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.3% for FTKI. Worst drawdown: FTKI -15.2% vs QQQ -83.0%.
Should I hold both FTKI and QQQ?
FTKI and QQQ have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTKI and QQQ?
FTKI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 247 unique securities.
Which pays a higher dividend, FTKI or QQQ?
FTKI yields 12.53% while QQQ yields 0.41%, so FTKI currently pays the higher dividend yield.
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