QTEC vs. QQQ
Compare and contrast key facts about First Trust NASDAQ-100 Technology Sector Index Fund (QTEC) and Invesco QQQ (QQQ).
QTEC and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. QTEC is a passively managed fund by First Trust that tracks the performance of the NASDAQ-100 Technology Sector Index. It was launched on Apr 19, 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 QTEC 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: QTEC or QQQ.
Key characteristics
| QTEC | QQQ | |
|---|---|---|
| YTD Return | 12.17% | 25.63% |
| 1Y Return | 25.58% | 33.85% |
| 3Y Return (Ann) | 3.29% | 9.83% |
| 5Y Return (Ann) | 16.06% | 21.21% |
| 10Y Return (Ann) | 17.24% | 18.37% |
| Sharpe Ratio | 1.29 | 2.12 |
| Sortino Ratio | 1.78 | 2.79 |
| Omega Ratio | 1.23 | 1.38 |
| Calmar Ratio | 1.72 | 2.71 |
| Martin Ratio | 5.13 | 9.88 |
| Ulcer Index | 5.80% | 3.72% |
| Daily Std Dev | 23.09% | 17.31% |
| Max Drawdown | -58.86% | -82.98% |
| Current Drawdown | -4.19% | -0.37% |
Correlation
The correlation between QTEC and QQQ is 0.90, 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
QTEC vs. QQQ - Performance Comparison
In the year-to-date period, QTEC achieves a 12.17% return, which is significantly lower than QQQ's 25.63% return. Over the past 10 years, QTEC has underperformed QQQ with an annualized return of 17.24%, while QQQ has yielded a comparatively higher 18.37% 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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QTEC vs. QQQ - Expense Ratio Comparison
QTEC has a 0.57% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
QTEC vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust NASDAQ-100 Technology Sector Index Fund (QTEC) 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
QTEC vs. QQQ - Dividend Comparison
QTEC's dividend yield for the trailing twelve months is around 0.04%, less than QQQ's 0.59% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
QTEC First Trust NASDAQ-100 Technology Sector Index Fund | 0.04% | 0.14% | 0.15% | 0.02% | 0.44% | 0.68% | 0.91% | 0.80% | 1.29% | 0.99% | 1.22% | 0.72% |
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
QTEC vs. QQQ - Drawdown Comparison
The maximum QTEC drawdown since its inception was -58.86%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for QTEC and QQQ. For additional features, visit the drawdowns tool.
Volatility
QTEC vs. QQQ - Volatility Comparison
First Trust NASDAQ-100 Technology Sector Index Fund (QTEC) has a higher volatility of 6.69% compared to Invesco QQQ (QQQ) at 4.91%. This indicates that QTEC'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.