QTEC vs. QQQ

Last updated Jun 25, 2026

QTEC (First Trust NASDAQ-100 Technology Sector Index Fund) and QQQ (Invesco QQQ ETF) are both Nasdaq-100 funds - QTEC tracks the NASDAQ-100 Technology Sector Index while QQQ tracks the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, QTEC returned 22.82%/yr vs 22.01%/yr for QQQ. Their correlation of 0.90 suggests significant overlap in exposure. QTEC charges 0.57%/yr vs 0.18%/yr for QQQ.

Performance

QTEC vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust NASDAQ-100 Technology Sector Index Fund (QTEC) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QTEC achieves a 37.95% return, which is significantly higher than QQQ's 15.95% return. Both investments have delivered pretty close results over the past 10 years, with QTEC having a 22.82% annualized return and QQQ not far behind at 22.01%.

QTEC

• 1D: -0.75%
• 1M: 4.25%
• YTD: 37.95%
• 6M: 35.15%
• 1Y: 51.53%
• 3Y*: 30.80%
• 5Y*: 15.35%
• 10Y*: 22.82%

QQQ

• 1D: -0.42%
• 1M: -0.86%
• YTD: 15.95%
• 6M: 14.16%
• 1Y: 32.28%
• 3Y*: 25.87%
• 5Y*: 15.94%
• 10Y*: 22.01%

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

QTEC vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QTEC First Trust NASDAQ-100 Technology Sector Index Fund	37.95%	22.28%	7.32%	67.02%	-39.83%	26.89%	38.76%	48.22%	-4.62%	37.78%
QQQ Invesco QQQ ETF	15.95%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between QTEC and QQQ is 0.90, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since May 2, 2006	0.90

The correlation between QTEC and QQQ has been stable across timeframes, ranging from 0.90 to 0.93 - a consistent structural relationship.

QTEC vs. QQQ - Sectors Allocation Comparison

Sectors	QTEC	QQQ
Technology	89.8%	58.7%
Communication Services	5.8%	14.3%
Consumer Cyclical	3.0%	11.4%
Industrials	1.4%	2.6%
Basic Materials	-	1.0%
Consumer Defensive	-	6.4%
Energy	-	0.5%
Financial Services	-	0.2%
Healthcare	-	3.7%
Real Estate	-	0.1%
Utilities	-	1.2%

Return for Risk

QTEC vs. QQQ — Risk / Return Rank

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

QTEC

QTEC Risk / Return Rank: 65
QTEC Sharpe Ratio Rank: 69
QTEC Sortino Ratio Rank: 60
QTEC Omega Ratio Rank: 63
QTEC Calmar Ratio Rank: 71
QTEC Martin Ratio Rank: 63

QQQ

QQQ Risk / Return Rank: 59
QQQ Sharpe Ratio Rank: 60
QQQ Sortino Ratio Rank: 56
QQQ Omega Ratio Rank: 58
QQQ Calmar Ratio Rank: 61
QQQ Martin Ratio Rank: 61

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.

QTEC vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust NASDAQ-100 Technology Sector Index Fund (QTEC) and Invesco QQQ ETF (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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	QTEC	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.99	1.81	+0.17
Sortino ratio: Return per unit of downside risk	2.53	2.41	+0.13
Omega ratio: Gain probability vs. loss probability	1.34	1.32	+0.01
Calmar ratio: Return relative to maximum drawdown	3.23	2.71	+0.52
Martin ratio: Return relative to average drawdown	10.14	10.01	+0.13

QTEC vs. QQQ - Sharpe Ratio Comparison

The current QTEC Sharpe Ratio is 1.99, which is comparable to the QQQ Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of QTEC and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

QTEC vs. QQQ - Drawdown Comparison

The maximum QTEC drawdown since its inception was -58.86%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for QTEC and QQQ.

Drawdown Indicators

	QTEC	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-58.86%	-82.97%	+24.11%
Max Drawdown (1Y) Largest decline over 1 year	-16.03%	-11.96%	-4.07%
Max Drawdown (3Y) Largest decline over 3 years	-29.00%	-22.77%	-6.23%
Max Drawdown (5Y) Largest decline over 5 years	-45.54%	-35.12%	-10.42%
Max Drawdown (10Y) Largest decline over 10 years	-45.54%	-35.12%	-10.42%
Current Drawdown Current decline from peak	-5.41%	-4.66%	-0.75%
Average Drawdown Average peak-to-trough decline	-9.87%	-32.72%	+22.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.10%	3.23%	+1.87%

Volatility

QTEC vs. QQQ - Volatility Comparison

First Trust NASDAQ-100 Technology Sector Index Fund (QTEC) has a higher volatility of 14.43% compared to Invesco QQQ ETF (QQQ) at 9.17%. 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.

Volatility by Period

	QTEC	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.43%	9.17%	+5.26%
Volatility (6M) Calculated over the trailing 6-month period	21.93%	14.54%	+7.39%
Volatility (1Y) Calculated over the trailing 1-year period	26.16%	17.95%	+8.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.72%	22.69%	+7.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.75%	22.41%	+5.34%

QTEC vs. QQQ - Expense Ratio Comparison

QTEC has a 0.57% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

QTEC vs. QQQ - Dividend Comparison

QTEC has not paid dividends to shareholders, while QQQ's dividend yield for the trailing twelve months is around 0.43%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QQQ Invesco QQQ ETF	0.43%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%
QTEC First Trust NASDAQ-100 Technology Sector Index Fund	0.00%	0.00%	0.02%	0.14%	0.15%	0.02%	0.44%	0.68%	0.91%	0.80%	1.29%	0.99%

Frequently Asked Questions

Can I hold both QTEC and QQQ in my portfolio?

With a correlation of 0.90, QTEC and QQQ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, QTEC or QQQ?

QTEC has higher volatility (14.43%) compared to QQQ (9.17%). In terms of maximum drawdown, QTEC dropped -58.86% vs QQQ's -82.97%.

Which ETF is better, QTEC or QQQ?

On 10-year performance, QTEC leads with 22.82% vs 22.01% for QQQ. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 9.17%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QTEC or QQQ?

Over the 10-year period, QTEC has performed better with a 22.82% return vs 22.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QTEC or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.57% for QTEC.

Which ETF pays a higher dividend yield, QTEC or QQQ?

QQQ has the higher dividend yield at 0.43%, compared with 0.00% for QTEC.

What is the main difference between QTEC and QQQ?

QTEC tracks NASDAQ-100 Technology Sector Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.57% for QTEC and 0.18% for QQQ.

Which has better risk-adjusted returns?

QTEC currently has the higher Sharpe Ratio (1.99 vs 1.81), 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.