CARZ vs. QQQ

Last updated Aug 2, 2026

CARZ (First Trust NASDAQ Global Auto Index Fund) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - CARZ is a Consumer Discretionary Equities fund tracking the NASDAQ OMX Global Automobile (TR), while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, CARZ returned 14.32%/yr vs 20.44%/yr for QQQ. Their 0.68 correlation means they have sometimes moved together and sometimes differently. CARZ charges 0.70%/yr vs 0.18%/yr for QQQ.

Performance

CARZ vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust NASDAQ Global Auto Index Fund (CARZ) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CARZ achieves a 31.11% return, which is significantly higher than QQQ's 12.26% return. Over the past 10 years, CARZ has underperformed QQQ with an annualized return of 14.32%, while QQQ has yielded a comparatively higher 20.44% annualized return.

CARZ

• 1D: -0.24%
• 1M: -7.17%
• 6M: 20.80%
• YTD: 31.11%
• 1Y: 66.56%
• 3Y*: 22.13%
• 5Y*: 12.78%
• 10Y*: 14.32%
• ALL TIME*: 10.15%

QQQ

• 1D: 0.65%
• 1M: -3.45%
• 6M: 10.89%
• YTD: 12.26%
• 1Y: 24.81%
• 3Y*: 22.29%
• 5Y*: 14.23%
• 10Y*: 20.44%
• ALL TIME*: 10.64%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
CARZ First Trust NASDAQ Global Auto Index Fund	$535.60K	$505.64K	$494.01K
QQQ Invesco QQQ ETF	$30.32B	$28.40B	$31.45B

CARZ vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CARZ First Trust NASDAQ Global Auto Index Fund	31.11%	37.18%	3.26%	42.47%	-31.25%	18.09%	54.66%	11.39%	-23.91%	25.47%
QQQ Invesco QQQ ETF	12.26%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between CARZ and QQQ is 0.90, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.90
Correlation (3Y) Balances recent behavior with more history.	0.82
Correlation (5Y) Shows whether the relationship held over a longer period.	0.82
Correlation (10Y) Provides a long-term view across more market conditions.	0.71
Correlation (All Time) Calculated using the full available price history since May 10, 2011	0.68

Over the past year, CARZ and QQQ have become more correlated (0.90) than their long-term average of 0.68, meaning their price movements have been converging.

CARZ vs. QQQ - Sectors Allocation Comparison

Sectors	CARZ	QQQ
Technology	69.1%	60.9%
Consumer Cyclical	16.3%	10.7%
Industrials	6.4%	2.7%
Basic Materials	4.2%	1.0%
Communication Services	4.1%	13.1%
Consumer Defensive	-	6.3%
Energy	-	0.5%
Financial Services	-	0.2%
Healthcare	-	3.6%
Real Estate	-	0.1%
Utilities	-	1.1%

Return for Risk

CARZ vs. QQQ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

CARZ

CARZ Risk / Return Rank: 81
CARZ Sharpe Ratio Rank: 85
CARZ Sortino Ratio Rank: 78
CARZ Omega Ratio Rank: 81
CARZ Calmar Ratio Rank: 81
CARZ Martin Ratio Rank: 82

QQQ

QQQ Risk / Return Rank: 49
QQQ Sharpe Ratio Rank: 47
QQQ Sortino Ratio Rank: 46
QQQ Omega Ratio Rank: 45
QQQ Calmar Ratio Rank: 53
QQQ Martin Ratio Rank: 52

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

CARZ vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust NASDAQ Global Auto Index Fund (CARZ) and Invesco QQQ ETF (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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	CARZ	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.01	1.16	+0.85
Sortino ratio: Return per unit of downside risk	2.53	1.65	+0.88
Omega ratio: Gain probability vs. loss probability	1.34	1.21	+0.13
Calmar ratio: Return relative to maximum drawdown	2.98	1.88	+1.10
Martin ratio: Return relative to average drawdown	10.94	6.00	+4.94

CARZ vs. QQQ - Sharpe Ratio Comparison

The current CARZ Sharpe Ratio is 2.01, which is higher than the QQQ Sharpe Ratio of 1.16. The chart below compares the historical Sharpe Ratios of CARZ and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

CARZ vs. QQQ - Drawdown Comparison

The maximum CARZ drawdown since its inception was -51.20%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for CARZ and QQQ.

Drawdown Indicators

	CARZ	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-51.20%	-82.97%	+31.77%
Max Drawdown (1Y) Largest decline over 1 year	-21.44%	-11.96%	-9.48%
Max Drawdown (3Y) Largest decline over 3 years	-27.84%	-22.77%	-5.07%
Max Drawdown (5Y) Largest decline over 5 years	-40.30%	-35.12%	-5.18%
Max Drawdown (10Y) Largest decline over 10 years	-51.20%	-35.12%	-16.08%
Current Drawdown Current decline from peak	-17.07%	-7.69%	-9.38%
Average Drawdown Average peak-to-trough decline	-12.87%	-32.62%	+19.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.83%	3.74%	+2.09%

Volatility

CARZ vs. QQQ - Volatility Comparison

First Trust NASDAQ Global Auto Index Fund (CARZ) has a higher volatility of 12.06% compared to Invesco QQQ ETF (QQQ) at 6.87%. This indicates that CARZ'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.

Volatility by Period

	CARZ	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.06%	6.87%	+5.19%
Volatility (6M) Calculated over the trailing 6-month period	27.80%	16.08%	+11.72%
Volatility (1Y) Calculated over the trailing 1-year period	31.88%	19.38%	+12.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.28%	22.90%	+6.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.77%	22.50%	+4.27%

CARZ vs. QQQ - Expense Ratio Comparison

CARZ has a 0.70% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

CARZ vs. QQQ - Dividend Comparison

CARZ's dividend yield for the trailing twelve months is around 1.34%, more than QQQ's 0.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CARZ First Trust NASDAQ Global Auto Index Fund	1.34%	2.13%	1.17%	1.40%	1.59%	2.25%	0.63%	3.23%	2.85%	2.11%	2.47%	1.64%
QQQ Invesco QQQ ETF	0.44%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both CARZ and QQQ in my portfolio?

With a correlation of 0.90, CARZ and QQQ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, CARZ or QQQ?

CARZ has higher volatility (12.06%) compared to QQQ (6.87%). In terms of maximum drawdown, CARZ dropped -51.20% vs QQQ's -82.97%.

Which ETF is better, CARZ or QQQ?

On 10-year performance, QQQ leads with 20.44% vs 14.32% for CARZ. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 6.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CARZ or QQQ?

Over the 10-year period, QQQ has performed better with a 20.44% return vs 14.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CARZ or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.70% for CARZ.

Which ETF pays a higher dividend yield, CARZ or QQQ?

CARZ has the higher dividend yield at 1.34%, compared with 0.44% for QQQ.

What is the main difference between CARZ and QQQ?

CARZ is categorized as Consumer Discretionary Equities, while QQQ is Nasdaq-100. CARZ tracks NASDAQ OMX Global Automobile (TR), while QQQ tracks NASDAQ-100 Index. They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.70% for CARZ and 0.18% for QQQ.

Which has better risk-adjusted returns?

CARZ currently has the higher Sharpe Ratio (2.01 vs 1.16), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.