QQQ vs SDVD

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. SDVD offers more diversification with 173 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: SDVD

Side-by-Side Comparison

MetricQQQSDVDWinner
Expense Ratio0.18%0.85%
AUM$455.8B$886M
Dividend Yield0.41%8.25%
Holdings108168
YTD Return+18.20%+12.29%
1Y Return+27.63%+20.03%
3Y Return (annualized)+25.54%+6.35%
5Y Return (annualized)+15.12%-
Volatility (annualized)30.6%22.4%
Max Drawdown-83.0%-29.1%
Fund FamilyInvesco (US)First Trust Portfolios (US)
CategoryEquityEquity
InceptionMar 10, 1999Aug 9, 2023

QQQ vs SDVD Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and FT Vest SMID Rising Dividend Achievers Target Income ETF (SDVD) is a ETF from First Trust Portfolios (US). Over the past year QQQ returned +27.63% while SDVD returned +20.03%. Year to date, QQQ is up 18.20% versus a gain of 12.29% for SDVD.

Over three years, QQQ compounded at +25.54% per year against +6.35% for SDVD. Across the full 3-year window we track, QQQ has the edge at +13.11% annualized vs +6.35%. 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 22.4% for SDVD. 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 -83.0% for QQQ and -29.1% for SDVD. 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while SDVD charges 0.85%. On a $10,000 position that is $18 vs $85 annually, a gap of $67 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 8.25% for SDVD.

Holdings Overlap

0.0%overlap

QQQ and SDVD share 0 holdings out of 276 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, QQQ or SDVD?

QQQ has an expense ratio of 0.18% while SDVD charges 0.85%. QQQ is the cheaper option. On a $10,000 investment, that is $67 per year of difference.

Which performed better, QQQ or SDVD?

Over the past year QQQ returned +27.63% vs +20.03% for SDVD, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.11% vs +6.35% for SDVD. Past performance does not guarantee future results.

Which is riskier, QQQ or SDVD?

QQQ has been the more volatile fund at 30.6% annualized versus 22.4% for SDVD. Worst drawdown: QQQ -83.0% vs SDVD -29.1%.

Should I hold both QQQ and SDVD?

QQQ and SDVD have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and SDVD?

QQQ and SDVD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 276 unique securities.

Which pays a higher dividend, QQQ or SDVD?

QQQ yields 0.41% while SDVD yields 8.25%, so SDVD currently pays the higher dividend yield.

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