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AIRR vs. QQQ

Last updated May 27, 2023

Compare and contrast key facts about First Trust RBA American Industrial Renaissance ETF (AIRR) and Invesco QQQ (QQQ).

AIRR and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. AIRR is a passively managed fund by First Trust that tracks the performance of the Richard Bernstein Advisors American Industrial Renaissance (TR). It was launched on Mar 10, 2014. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both AIRR and QQQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: AIRR or QQQ.

Key characteristics


AIRRQQQ
YTD Return10.72%31.04%
1Y Return23.67%17.28%
5Y Return (Ann)13.28%16.31%
10Y Return (Ann)10.65%17.87%
Sharpe Ratio0.970.75
Daily Std Dev26.61%27.35%
Max Drawdown-42.37%-82.98%

Correlation

0.56
-1.001.00

The correlation between AIRR and QQQ is 0.56, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

AIRR vs. QQQ - Performance Comparison

In the year-to-date period, AIRR achieves a 10.72% return, which is significantly lower than QQQ's 31.04% return. Over the past 10 years, AIRR has underperformed QQQ with an annualized return of 10.65%, while QQQ has yielded a comparatively higher 17.87% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.


-10.00%-5.00%0.00%5.00%10.00%15.00%20.00%25.00%December2023FebruaryMarchAprilMay
7.41%
24.67%
AIRR
QQQ

Compare stocks, funds, or ETFs


Invesco QQQ

AIRR vs. QQQ - Dividend Comparison

AIRR's dividend yield for the trailing twelve months is around 0.17%, less than QQQ's 0.75% yield.


TTM20222021202020192018201720162015201420132012
AIRR
First Trust RBA American Industrial Renaissance ETF
0.17%0.12%0.05%0.10%0.20%0.43%0.30%0.08%0.48%0.38%0.00%0.00%
QQQ
Invesco QQQ
0.75%0.80%0.43%0.56%0.76%0.94%0.87%1.11%1.05%1.51%1.10%1.38%

AIRR vs. QQQ - Expense Ratio Comparison

AIRR has a 0.70% expense ratio, which is higher than QQQ's 0.20% expense ratio.

AIRR vs. QQQ - Risk-Adjusted Performance Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust RBA American Industrial Renaissance ETF (AIRR) and Invesco QQQ (QQQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.


Sharpe ratioSortino ratioOmega ratioCalmar ratioUlcer Index
AIRR
First Trust RBA American Industrial Renaissance ETF
0.97
QQQ
Invesco QQQ
0.75

AIRR vs. QQQ - Sharpe Ratio Comparison

The current AIRR Sharpe Ratio is 0.97, which roughly equals the QQQ Sharpe Ratio of 0.75. The chart below compares the 12-month rolling Sharpe Ratio of AIRR and QQQ.


-1.00-0.500.000.501.00December2023FebruaryMarchAprilMay
0.97
0.75
AIRR
QQQ

AIRR vs. QQQ - Drawdown Comparison

The maximum AIRR drawdown for the period was -14.36%, higher than the maximum QQQ drawdown of -35.06%. The drawdown chart below compares losses from any high point along the way for AIRR and QQQ


-40.00%-30.00%-20.00%-10.00%0.00%December2023FebruaryMarchAprilMay
-5.38%
-12.88%
AIRR
QQQ

AIRR vs. QQQ - Volatility Comparison

First Trust RBA American Industrial Renaissance ETF (AIRR) has a higher volatility of 6.68% compared to Invesco QQQ (QQQ) at 5.15%. This indicates that AIRR's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


4.00%5.00%6.00%7.00%8.00%9.00%10.00%11.00%December2023FebruaryMarchAprilMay
6.68%
5.15%
AIRR
QQQ