FDN vs. QQQ
Compare and contrast key facts about First Trust Dow Jones Internet Index (FDN) and Invesco QQQ (QQQ).
FDN and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FDN is a passively managed fund by First Trust that tracks the performance of the Dow Jones Internet Index. It was launched on Jun 23, 2006. 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 FDN 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: FDN or QQQ.
Key characteristics
| FDN | QQQ | |
|---|---|---|
| YTD Return | 27.75% | 25.79% |
| 1Y Return | 48.39% | 36.91% |
| 3Y Return (Ann) | -1.32% | 9.89% |
| 5Y Return (Ann) | 12.44% | 21.42% |
| 10Y Return (Ann) | 14.41% | 18.39% |
| Sharpe Ratio | 2.57 | 2.11 |
| Sortino Ratio | 3.28 | 2.78 |
| Omega Ratio | 1.45 | 1.38 |
| Calmar Ratio | 1.32 | 2.69 |
| Martin Ratio | 13.46 | 9.81 |
| Ulcer Index | 3.57% | 3.72% |
| Daily Std Dev | 18.68% | 17.32% |
| Max Drawdown | -61.55% | -82.98% |
| Current Drawdown | -5.52% | -0.24% |
Correlation
The correlation between FDN and QQQ is 0.87, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
FDN vs. QQQ - Performance Comparison
In the year-to-date period, FDN achieves a 27.75% return, which is significantly higher than QQQ's 25.79% return. Over the past 10 years, FDN has underperformed QQQ with an annualized return of 14.41%, while QQQ has yielded a comparatively higher 18.39% 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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FDN vs. QQQ - Expense Ratio Comparison
FDN has a 0.52% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
FDN vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Dow Jones Internet Index (FDN) 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.
Dividends
FDN vs. QQQ - Dividend Comparison
FDN has not paid dividends to shareholders, while QQQ's dividend yield for the trailing twelve months is around 0.59%.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FDN First Trust Dow Jones Internet Index | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
QQQ Invesco QQQ | 0.59% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.02% |
Drawdowns
FDN vs. QQQ - Drawdown Comparison
The maximum FDN drawdown since its inception was -61.55%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for FDN and QQQ. For additional features, visit the drawdowns tool.
Volatility
FDN vs. QQQ - Volatility Comparison
First Trust Dow Jones Internet Index (FDN) and Invesco QQQ (QQQ) have volatilities of 4.91% and 5.14%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.