INCM vs QQQ
INCM vs QQQ
Franklin Income Focus ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. INCM offers more diversification with 258 holdings.
Side-by-Side Comparison
| Metric | INCM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $1.7B | $455.8B | |
| Dividend Yield | 5.04% | 0.41% | |
| Holdings | 357 | 108 | |
| YTD Return | +7.96% | +18.34% | |
| 1Y Return | +14.51% | +28.94% | |
| 3Y Return (annualized) | +11.36% | +25.28% | |
| 5Y Return (annualized) | - | +15.22% | |
| Volatility (annualized) | 7.2% | 30.6% | |
| Max Drawdown | -7.8% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jun 6, 2023 | Mar 10, 1999 |
INCM vs QQQ Performance
Franklin Income Focus ETF (INCM) is a ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year INCM returned +14.51% while QQQ returned +28.94%. Year to date, INCM is up 7.96% versus a gain of 18.34% for QQQ.
Over three years, INCM compounded at +11.36% per year against +25.28% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.12% annualized vs +10.98%. 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 7.2% for INCM. 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 -7.8% for INCM 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
INCM charges 0.38% per year while QQQ charges 0.18%. On a $10,000 position that is $38 vs $18 annually, a gap of $20 per year that compounds over a long holding period. On income, INCM currently yields 5.04% against 0.41% for QQQ.
Holdings Overlap
INCM and QQQ share 7 holdings out of 354 unique holdings combined, representing a 2.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in INCM | Weight in QQQ | Difference |
|---|---|---|---|
| MSFT | 0.16% | 4.65% | 4.49% |
| AMZN | 0.16% | 4.26% | 4.10% |
| CSCO | 0.33% | 2.08% | 1.75% |
| PEP | Pro | Pro | Pro |
| TXN | Pro | Pro | Pro |
| MDLZ | Pro | Pro | Pro |
| XEL | Pro | Pro | Pro |
See all 7 holdings INCM 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, INCM or QQQ?
INCM has an expense ratio of 0.38% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, INCM or QQQ?
Over the past year INCM returned +14.51% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), INCM annualized +10.98% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, INCM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 7.2% for INCM. Worst drawdown: INCM -7.8% vs QQQ -83.0%.
Should I hold both INCM and QQQ?
INCM and QQQ have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between INCM and QQQ?
INCM and QQQ share 7 common holdings with a 2.4% weight overlap. Combined, they hold 354 unique securities.
Which pays a higher dividend, INCM or QQQ?
INCM yields 5.04% while QQQ yields 0.41%, so INCM currently pays the higher dividend yield.
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