FIW vs. QQQ
Compare and contrast key facts about First Trust Water ETF (FIW) and Invesco QQQ (QQQ).
FIW and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FIW is a passively managed fund by First Trust that tracks the performance of the ISE Clean Edge Water Index. It was launched on May 8, 2007. 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 FIW 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: FIW or QQQ.
Key characteristics
FIW | QQQ | |
---|---|---|
YTD Return | 7.68% | 8.77% |
1Y Return | 26.76% | 45.81% |
3Y Return (Ann) | 10.09% | 12.81% |
5Y Return (Ann) | 15.58% | 20.75% |
10Y Return (Ann) | 12.53% | 18.73% |
Sharpe Ratio | 1.82 | 2.80 |
Daily Std Dev | 15.18% | 16.07% |
Max Drawdown | -52.75% | -82.98% |
Current Drawdown | 0.00% | -0.35% |
Correlation
The correlation between FIW and QQQ is 0.72, 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
FIW vs. QQQ - Performance Comparison
In the year-to-date period, FIW achieves a 7.68% return, which is significantly lower than QQQ's 8.77% return. Over the past 10 years, FIW has underperformed QQQ with an annualized return of 12.53%, while QQQ has yielded a comparatively higher 18.73% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
FIW vs. QQQ - Expense Ratio Comparison
Risk-Adjusted Performance
FIW vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Water ETF (FIW) 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 | |
---|---|---|---|---|---|
First Trust Water ETF | 1.82 | ||||
Invesco QQQ | 2.80 |
Dividends
FIW vs. QQQ - Dividend Comparison
FIW's dividend yield for the trailing twelve months is around 0.63%, more than QQQ's 0.59% yield.
TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
First Trust Water ETF | 0.63% | 0.68% | 0.67% | 0.37% | 0.56% | 0.55% | 0.73% | 1.13% | 0.51% | 0.76% | 0.75% | 0.62% |
Invesco QQQ | 0.59% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
FIW vs. QQQ - Drawdown Comparison
The maximum FIW drawdown since its inception was -52.75%, smaller than the maximum QQQ drawdown of -82.98%. The drawdown chart below compares losses from any high point along the way for FIW and QQQ
Volatility
FIW vs. QQQ - Volatility Comparison
The current volatility for First Trust Water ETF (FIW) is 3.71%, while Invesco QQQ (QQQ) has a volatility of 4.40%. This indicates that FIW experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.