AIRR vs. QQQ
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
| AIRR | QQQ | |
|---|---|---|
| YTD Return | 10.72% | 31.04% |
| 1Y Return | 23.67% | 17.28% |
| 5Y Return (Ann) | 13.28% | 16.31% |
| 10Y Return (Ann) | 10.65% | 17.87% |
| Sharpe Ratio | 0.97 | 0.75 |
| Daily Std Dev | 26.61% | 27.35% |
| Max Drawdown | -42.37% | -82.98% |
Correlation
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.
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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.
| TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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 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 ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
|---|---|---|---|---|---|
AIRR First Trust RBA American Industrial Renaissance ETF | 0.97 | ||||
QQQ Invesco QQQ | 0.75 |
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
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.