SKYY vs. QTEC

Last updated Jun 5, 2026

SKYY (First Trust ISE Cloud Computing Index Fund) and QTEC (First Trust NASDAQ-100 Technology Sector Index Fund) are both exchange-traded funds - SKYY is a Technology Equities fund tracking the ISE Cloud Computing Index, while QTEC is a Nasdaq-100 fund tracking the NASDAQ-100 Technology Sector Index. Both are passively managed. Over the past 10 years, SKYY returned 17.15%/yr vs 22.85%/yr for QTEC. Their correlation of 0.86 suggests significant overlap in exposure. SKYY charges 0.60%/yr vs 0.57%/yr for QTEC.

Performance

SKYY vs. QTEC - Performance Comparison

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

Returns By Period

In the year-to-date period, SKYY achieves a 13.77% return, which is significantly lower than QTEC's 43.17% return. Over the past 10 years, SKYY has underperformed QTEC with an annualized return of 17.15%, while QTEC has yielded a comparatively higher 22.85% annualized return.

SKYY

• 1D: 0.17%
• 1M: 13.59%
• YTD: 13.77%
• 6M: 12.75%
• 1Y: 26.33%
• 3Y*: 25.31%
• 5Y*: 8.50%
• 10Y*: 17.15%

QTEC

• 1D: -1.08%
• 1M: 18.57%
• YTD: 43.17%
• 6M: 39.34%
• 1Y: 64.90%
• 3Y*: 32.59%
• 5Y*: 17.36%
• 10Y*: 22.85%

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

SKYY vs. QTEC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SKYY First Trust ISE Cloud Computing Index Fund	13.77%	9.20%	35.87%	52.18%	-44.68%	10.62%	57.77%	25.25%	6.01%	33.47%
QTEC First Trust NASDAQ-100 Technology Sector Index Fund	43.17%	22.28%	7.32%	67.02%	-39.83%	26.89%	38.76%	48.22%	-4.62%	37.78%

Correlation

The correlation between SKYY and QTEC is 0.74, 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	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Jul 7, 2011	0.86

The correlation between SKYY and QTEC shifts across timeframes, from 0.74 (1 year) to 0.87 (5 years), reflecting how their relationship changes across market environments.

SKYY vs. QTEC - Sectors Allocation Comparison

Sectors	SKYY	QTEC
Technology	88.9%	87.9%
Communication Services	4.8%	6.2%
Consumer Cyclical	1.6%	4.0%
Healthcare	1.6%	-
Industrials	1.6%	1.9%
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

SKYY vs. QTEC — Risk / Return Rank

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

SKYY

SKYY Risk / Return Rank: 25
SKYY Sharpe Ratio Rank: 27
SKYY Sortino Ratio Rank: 28
SKYY Omega Ratio Rank: 28
SKYY Calmar Ratio Rank: 22
SKYY Martin Ratio Rank: 20

QTEC

QTEC Risk / Return Rank: 79
QTEC Sharpe Ratio Rank: 87
QTEC Sortino Ratio Rank: 80
QTEC Omega Ratio Rank: 77
QTEC Calmar Ratio Rank: 80
QTEC Martin Ratio Rank: 71

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.

SKYY vs. QTEC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust ISE Cloud Computing Index Fund (SKYY) and First Trust NASDAQ-100 Technology Sector Index Fund (QTEC). 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.

	SKYY	QTEC	Difference
Sharpe ratio: Return per unit of total volatility	0.95	2.84	-1.89
Sortino ratio: Return per unit of downside risk	1.48	3.54	-2.06
Omega ratio: Gain probability vs. loss probability	1.18	1.45	-0.27
Calmar ratio: Return relative to maximum drawdown	0.97	4.07	-3.10
Martin ratio: Return relative to average drawdown	2.16	13.17	-11.01
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SKYY vs. QTEC - Sharpe Ratio Comparison

The current SKYY Sharpe Ratio is 0.95, which is lower than the QTEC Sharpe Ratio of 2.84. The chart below compares the historical Sharpe Ratios of SKYY and QTEC, 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

	SKYY	QTEC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.95	2.84	-1.89
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.60	-0.32
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.64	0.83	-0.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.58	0.60	-0.02

Drawdowns

SKYY vs. QTEC - Drawdown Comparison

The maximum SKYY drawdown since its inception was -53.20%, smaller than the maximum QTEC drawdown of -58.86%. Use the drawdown chart below to compare losses from any high point for SKYY and QTEC.

Drawdown Indicators

	SKYY	QTEC	Difference
Max Drawdown Largest peak-to-trough decline	-53.20%	-58.86%	+5.66%
Max Drawdown (1Y) Largest decline over 1 year	-27.39%	-16.03%	-11.36%
Max Drawdown (3Y) Largest decline over 3 years	-31.80%	-29.00%	-2.80%
Max Drawdown (5Y) Largest decline over 5 years	-53.20%	-45.54%	-7.66%
Max Drawdown (10Y) Largest decline over 10 years	-53.20%	-45.54%	-7.66%
Current Drawdown Current decline from peak	-4.63%	-1.08%	-3.55%
Average Drawdown Average peak-to-trough decline	-10.90%	-9.89%	-1.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	12.20%	4.94%	+7.26%

Volatility

SKYY vs. QTEC - Volatility Comparison

First Trust ISE Cloud Computing Index Fund (SKYY) has a higher volatility of 11.57% compared to First Trust NASDAQ-100 Technology Sector Index Fund (QTEC) at 7.51%. This indicates that SKYY's price experiences larger fluctuations and is considered to be riskier than QTEC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SKYY	QTEC	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.57%	7.51%	+4.06%
Volatility (6M) Calculated over the trailing 6-month period	23.13%	18.24%	+4.89%
Volatility (1Y) Calculated over the trailing 1-year period	27.83%	22.97%	+4.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.57%	29.17%	+1.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.85%	27.50%	-0.65%

SKYY vs. QTEC - Expense Ratio Comparison

SKYY has a 0.60% expense ratio, which is higher than QTEC's 0.57% expense ratio.

Dividends

SKYY vs. QTEC - Dividend Comparison

Neither SKYY nor QTEC has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
SKYY First Trust ISE Cloud Computing Index Fund	0.00%	0.00%	0.00%	0.00%	0.23%	0.78%	0.17%	0.54%	0.37%	0.27%	0.35%	0.41%

Frequently Asked Questions

Can I hold both SKYY and QTEC in my portfolio?

SKYY and QTEC have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SKYY or QTEC?

SKYY has higher volatility (11.57%) compared to QTEC (7.51%). In terms of maximum drawdown, SKYY dropped -53.20% vs QTEC's -58.86%.

Which ETF is better, SKYY or QTEC?

On 10-year performance, QTEC leads with 22.85% vs 17.15% for SKYY. On fees, QTEC is cheaper at 0.57% per year. On volatility, QTEC has been the lower-risk option at 7.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SKYY or QTEC?

Over the 10-year period, QTEC has performed better with a 22.85% return vs 17.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SKYY or QTEC?

QTEC is cheaper with a 0.57% expense ratio, compared with 0.60% for SKYY.

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

SKYY and QTEC have nearly identical dividend yields, around 0.00%.

What is the main difference between SKYY and QTEC?

SKYY is categorized as Technology Equities, while QTEC is Nasdaq-100. SKYY tracks ISE Cloud Computing Index, while QTEC tracks NASDAQ-100 Technology Sector Index. Their fees differ too: 0.60% for SKYY and 0.57% for QTEC.

Which has better risk-adjusted returns?

QTEC currently has the higher Sharpe Ratio (2.84 vs 0.95), 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.