FVC vs. QQQ
Compare and contrast key facts about First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) and Invesco QQQ (QQQ).
FVC and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FVC is a passively managed fund by First Trust that tracks the performance of the Dorsey Wright Dynamic Focus Five Index. It was launched on Mar 18, 2016. 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 FVC 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: FVC or QQQ.
Key characteristics
| FVC | QQQ | |
|---|---|---|
| YTD Return | 2.62% | 6.48% |
| 1Y Return | 6.00% | 38.66% |
| 3Y Return (Ann) | -0.26% | 10.38% |
| 5Y Return (Ann) | 5.35% | 18.72% |
| Sharpe Ratio | 0.40 | 2.33 |
| Daily Std Dev | 12.37% | 16.36% |
| Max Drawdown | -30.96% | -82.98% |
| Current Drawdown | -11.99% | -2.44% |
Correlation
The correlation between FVC and QQQ is 0.77, 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
FVC vs. QQQ - Performance Comparison
In the year-to-date period, FVC achieves a 2.62% return, which is significantly lower than QQQ's 6.48% 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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FVC vs. QQQ - Expense Ratio Comparison
FVC has a 0.71% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
FVC vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) 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
FVC vs. QQQ - Dividend Comparison
FVC's dividend yield for the trailing twelve months is around 1.81%, more than QQQ's 0.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FVC First Trust Dorsey Wright Dynamic Focus 5 ETF | 1.81% | 1.89% | 1.50% | 0.09% | 0.21% | 1.07% | 0.24% | 0.63% | 0.67% | 0.00% | 0.00% | 0.00% |
QQQ Invesco QQQ | 0.61% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
FVC vs. QQQ - Drawdown Comparison
The maximum FVC drawdown since its inception was -30.96%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for FVC and QQQ. For additional features, visit the drawdowns tool.
Volatility
FVC vs. QQQ - Volatility Comparison
First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) and Invesco QQQ (QQQ) have volatilities of 5.65% and 5.81%, 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.