LDSF vs QQQ
LDSF vs QQQ
First Trust Low Duration Strategic Focus 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 | LDSF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.77% | 0.18% | |
| AUM | $161M | $455.8B | |
| Dividend Yield | 4.62% | 0.41% | |
| Holdings | 8 | 108 | |
| YTD Return | +1.23% | +16.83% | |
| 1Y Return | +3.42% | +26.58% | |
| 3Y Return (annualized) | +5.17% | +24.70% | |
| 5Y Return (annualized) | +2.44% | +14.88% | |
| Volatility (annualized) | 3.3% | 30.6% | |
| Max Drawdown | -8.7% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 2, 2019 | Mar 10, 1999 |
LDSF vs QQQ Performance
First Trust Low Duration Strategic Focus ETF (LDSF) 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 LDSF returned +3.42% while QQQ returned +26.58%. Year to date, LDSF is up 1.23% versus a gain of 16.83% for QQQ.
Over three years, LDSF compounded at +5.17% per year against +24.70% for QQQ; over five years the annualized figures are +2.44% and +14.88% respectively. Across the full 8-year window we track, QQQ has the edge at +13.06% annualized vs +1.72%. 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 3.3% for LDSF. 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 -8.7% for LDSF 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LDSF charges 0.77% per year while QQQ charges 0.18%. On a $10,000 position that is $77 vs $18 annually, a gap of $59 per year that compounds over a long holding period. On income, LDSF currently yields 4.62% against 0.41% for QQQ.
Holdings Overlap
LDSF and QQQ share 0 holdings out of 112 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, LDSF or QQQ?
LDSF has an expense ratio of 0.77% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $59 per year of difference.
Which performed better, LDSF or QQQ?
Over the past year LDSF returned +3.42% vs +26.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), LDSF annualized +1.72% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, LDSF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.3% for LDSF. Worst drawdown: LDSF -8.7% vs QQQ -83.0%.
Should I hold both LDSF and QQQ?
LDSF and QQQ have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LDSF and QQQ?
LDSF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 112 unique securities.
Which pays a higher dividend, LDSF or QQQ?
LDSF yields 4.62% while QQQ yields 0.41%, so LDSF currently pays the higher dividend yield.
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