LALT vs QQQ
LALT vs QQQ
First Trust Multi-Strategy Alternative ETF 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 | LALT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.18% | 0.18% | |
| AUM | $294M | $455.8B | |
| Dividend Yield | 3.68% | 0.41% | |
| Holdings | 9 | 108 | |
| YTD Return | +8.42% | +18.20% | |
| 1Y Return | +15.74% | +27.63% | |
| 3Y Return (annualized) | +9.51% | +25.54% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 4.7% | 30.6% | |
| Max Drawdown | -7.0% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 31, 2023 | Mar 10, 1999 |
LALT vs QQQ Performance
First Trust Multi-Strategy Alternative ETF (LALT) 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 LALT returned +15.74% while QQQ returned +27.63%. Year to date, LALT is up 8.42% versus a gain of 18.20% for QQQ.
Over three years, LALT compounded at +9.51% per year against +25.54% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.11% annualized vs +8.22%. 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 4.7% for LALT. 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 -7.0% for LALT 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 0.20. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LALT charges 1.18% per year while QQQ charges 0.18%. On a $10,000 position that is $118 vs $18 annually, a gap of $100 per year that compounds over a long holding period. On income, LALT currently yields 3.68% against 0.41% for QQQ.
Holdings Overlap
LALT and QQQ share 0 holdings out of 110 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, LALT or QQQ?
LALT has an expense ratio of 1.18% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $100 per year of difference.
Which performed better, LALT or QQQ?
Over the past year LALT returned +15.74% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), LALT annualized +8.22% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, LALT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.7% for LALT. Worst drawdown: LALT -7.0% vs QQQ -83.0%.
Should I hold both LALT and QQQ?
LALT and QQQ have a monthly-return correlation of 0.20, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LALT and QQQ?
LALT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 110 unique securities.
Which pays a higher dividend, LALT or QQQ?
LALT yields 3.68% while QQQ yields 0.41%, so LALT currently pays the higher dividend yield.
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