QQQ vs UCON
QQQ vs UCON
Invesco QQQ Trust, Series 1 vs First Trust Smith Unconstrained Bond ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. UCON offers more diversification with 320 holdings.
Side-by-Side Comparison
| Metric | QQQ | UCON | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.86% | |
| AUM | $455.8B | $3.3B | |
| Dividend Yield | 0.41% | 5.11% | |
| Holdings | 108 | 456 | |
| YTD Return | +17.27% | +0.72% | |
| 1Y Return | +28.64% | +3.71% | |
| 3Y Return (annualized) | +24.88% | +5.47% | |
| 5Y Return (annualized) | +14.86% | +2.73% | |
| Volatility (annualized) | 30.6% | 4.5% | |
| Max Drawdown | -83.0% | -15.3% | |
| Fund Family | Invesco (US) | First Trust Portfolios (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Jun 4, 2018 |
QQQ vs UCON Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and First Trust Smith Unconstrained Bond ETF (UCON) is a ETF from First Trust Portfolios (US). Over the past year QQQ returned +28.64% while UCON returned +3.71%. Year to date, QQQ is up 17.27% versus a gain of 0.72% for UCON.
Over three years, QQQ compounded at +24.88% per year against +5.47% for UCON; over five years the annualized figures are +14.86% and +2.73% respectively. Across the full 8-year window we track, QQQ has the edge at +13.08% annualized vs +2.57%. 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 4.5% for UCON. 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 -15.3% for UCON. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while UCON charges 0.86%. On a $10,000 position that is $18 vs $86 annually, a gap of $68 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 5.11% for UCON.
Holdings Overlap
QQQ and UCON share 0 holdings out of 423 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 UCON?
QQQ has an expense ratio of 0.18% while UCON charges 0.86%. QQQ is the cheaper option. On a $10,000 investment, that is $68 per year of difference.
Which performed better, QQQ or UCON?
Over the past year QQQ returned +28.64% vs +3.71% for UCON, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), QQQ annualized +13.08% vs +2.57% for UCON. Past performance does not guarantee future results.
Which is riskier, QQQ or UCON?
QQQ has been the more volatile fund at 30.6% annualized versus 4.5% for UCON. Worst drawdown: QQQ -83.0% vs UCON -15.3%.
Should I hold both QQQ and UCON?
QQQ and UCON have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and UCON?
QQQ and UCON share 0 common holdings with a 0.0% weight overlap. Combined, they hold 423 unique securities.
Which pays a higher dividend, QQQ or UCON?
QQQ yields 0.41% while UCON yields 5.11%, so UCON currently pays the higher dividend yield.
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