QABA vs. KBWB

Last updated Jun 4, 2026

QABA (First Trust NASDAQ ABA Community Bank Index Fund) and KBWB (Invesco KBW Bank ETF) are both Financials Equities funds - QABA tracks the NASDAQ OMX ABA Community Bank Index while KBWB tracks the KBW Nasdaq Bank Index. Both are passively managed. Over the past 10 years, QABA returned 6.80%/yr vs 12.09%/yr for KBWB. Their correlation of 0.85 suggests significant overlap in exposure. QABA charges 0.60%/yr vs 0.35%/yr for KBWB.

Performance

QABA vs. KBWB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust NASDAQ ABA Community Bank Index Fund (QABA) and Invesco KBW Bank ETF (KBWB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QABA achieves a 8.16% return, which is significantly higher than KBWB's 4.07% return. Over the past 10 years, QABA has underperformed KBWB with an annualized return of 6.80%, while KBWB has yielded a comparatively higher 12.09% annualized return.

QABA

• 1D: -2.39%
• 1M: -0.32%
• YTD: 8.16%
• 6M: 7.37%
• 1Y: 18.48%
• 3Y*: 17.46%
• 5Y*: 3.09%
• 10Y*: 6.80%

KBWB

• 1D: -1.39%
• 1M: 2.14%
• YTD: 4.07%
• 6M: 8.58%
• 1Y: 34.45%
• 3Y*: 31.93%
• 5Y*: 7.75%
• 10Y*: 12.09%

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

QABA vs. KBWB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QABA First Trust NASDAQ ABA Community Bank Index Fund	8.16%	4.62%	14.49%	-2.18%	-9.01%	34.20%	-10.70%	22.85%	-16.47%	0.75%
KBWB Invesco KBW Bank ETF	4.07%	32.05%	36.73%	-1.18%	-21.68%	37.72%	-10.46%	35.90%	-18.30%	18.11%

Correlation

The correlation between QABA and KBWB is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (10Y) Calculated over the trailing 10-year period	0.86
Correlation (All Time) Calculated using the full available price history since Nov 2, 2011	0.85

The correlation between QABA and KBWB shifts across timeframes, from 0.75 (1 year) to 0.86 (10 years), reflecting how their relationship changes across market environments.

QABA vs. KBWB - Sectors Allocation Comparison

Sectors	QABA	KBWB
Financial Services	99.7%	100.0%
Industrials	0.3%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

QABA vs. KBWB — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

QABA

QABA Risk / Return Rank: 26
QABA Sharpe Ratio Rank: 24
QABA Sortino Ratio Rank: 24
QABA Omega Ratio Rank: 24
QABA Calmar Ratio Rank: 30
QABA Martin Ratio Rank: 27

KBWB

KBWB Risk / Return Rank: 45
KBWB Sharpe Ratio Rank: 49
KBWB Sortino Ratio Rank: 45
KBWB Omega Ratio Rank: 47
KBWB Calmar Ratio Rank: 42
KBWB Martin Ratio Rank: 41

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

QABA vs. KBWB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust NASDAQ ABA Community Bank Index Fund (QABA) and Invesco KBW Bank ETF (KBWB). 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.

	QABA	KBWB	Difference
Sharpe ratio: Return per unit of total volatility	0.83	1.73	-0.90
Sortino ratio: Return per unit of downside risk	1.30	2.28	-0.98
Omega ratio: Gain probability vs. loss probability	1.16	1.30	-0.14
Calmar ratio: Return relative to maximum drawdown	1.49	2.11	-0.63
Martin ratio: Return relative to average drawdown	3.69	6.64	-2.95
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QABA vs. KBWB - Sharpe Ratio Comparison

The current QABA Sharpe Ratio is 0.83, which is lower than the KBWB Sharpe Ratio of 1.73. The chart below compares the historical Sharpe Ratios of QABA and KBWB, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	QABA	KBWB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.83	1.73	-0.90
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.12	0.29	-0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.24	0.42	-0.18
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.50	-0.15

Drawdowns

QABA vs. KBWB - Drawdown Comparison

The maximum QABA drawdown since its inception was -49.30%, roughly equal to the maximum KBWB drawdown of -50.27%. Use the drawdown chart below to compare losses from any high point for QABA and KBWB.

Drawdown Indicators

	QABA	KBWB	Difference
Max Drawdown Largest peak-to-trough decline	-49.30%	-50.27%	+0.97%
Max Drawdown (1Y) Largest decline over 1 year	-12.49%	-16.38%	+3.89%
Max Drawdown (3Y) Largest decline over 3 years	-25.82%	-25.43%	-0.39%
Max Drawdown (5Y) Largest decline over 5 years	-42.93%	-49.31%	+6.38%
Max Drawdown (10Y) Largest decline over 10 years	-49.30%	-50.27%	+0.97%
Current Drawdown Current decline from peak	-4.25%	-3.29%	-0.96%
Average Drawdown Average peak-to-trough decline	-11.43%	-11.74%	+0.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.02%	5.20%	-0.18%

Volatility

QABA vs. KBWB - Volatility Comparison

First Trust NASDAQ ABA Community Bank Index Fund (QABA) has a higher volatility of 5.63% compared to Invesco KBW Bank ETF (KBWB) at 5.14%. This indicates that QABA's price experiences larger fluctuations and is considered to be riskier than KBWB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QABA	KBWB	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.63%	5.14%	+0.49%
Volatility (6M) Calculated over the trailing 6-month period	15.22%	15.49%	-0.27%
Volatility (1Y) Calculated over the trailing 1-year period	22.50%	20.06%	+2.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.50%	26.63%	-0.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.69%	29.20%	-0.51%

QABA vs. KBWB - Expense Ratio Comparison

QABA has a 0.60% expense ratio, which is higher than KBWB's 0.35% expense ratio.

Dividends

QABA vs. KBWB - Dividend Comparison

QABA's dividend yield for the trailing twelve months is around 2.40%, more than KBWB's 2.06% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KBWB Invesco KBW Bank ETF	2.06%	2.04%	2.46%	3.20%	3.05%	2.13%	2.62%	2.38%	2.54%	1.35%	1.53%	1.53%
QABA First Trust NASDAQ ABA Community Bank Index Fund	2.40%	2.52%	2.37%	2.71%	2.10%	1.68%	2.55%	1.95%	1.90%	1.42%	1.13%	1.39%

Frequently Asked Questions

Can I hold both QABA and KBWB in my portfolio?

QABA and KBWB have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QABA or KBWB?

QABA has higher volatility (5.63%) compared to KBWB (5.14%). In terms of maximum drawdown, QABA dropped -49.30% vs KBWB's -50.27%.

Which ETF is better, QABA or KBWB?

On 10-year performance, KBWB leads with 12.09% vs 6.80% for QABA. On fees, KBWB is cheaper at 0.35% per year. On volatility, KBWB has been the lower-risk option at 5.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QABA or KBWB?

Over the 10-year period, KBWB has performed better with a 12.09% return vs 6.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QABA or KBWB?

KBWB is cheaper with a 0.35% expense ratio, compared with 0.60% for QABA.

Which ETF pays a higher dividend yield, QABA or KBWB?

QABA has the higher dividend yield at 2.40%, compared with 2.06% for KBWB.

What is the main difference between QABA and KBWB?

QABA tracks NASDAQ OMX ABA Community Bank Index, while KBWB tracks KBW Nasdaq Bank Index. They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.60% for QABA and 0.35% for KBWB.

Which has better risk-adjusted returns?

KBWB currently has the higher Sharpe Ratio (1.73 vs 0.83), 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.