AFLG vs QQQ
First Trust Active Factor Large Cap ETF vs Invesco QQQ Trust, Series 1
Which is better, AFLG or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. AFLG is less concentrated, with 33.0% of the fund in its ten largest positions against 46.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | AFLG | QQQ |
|---|---|---|
| Expense Ratio | 0.55% | 0.18%Best |
| AUM | $803M | $506.1B |
| Dividend Yield | 0.71% | 0.42% |
| Holdings | 435 | 321 |
| YTD Return | +14.82% | +19.30%Best |
| 1Y Return | +17.70% | +22.47%Best |
| 3Y Return (annualized) | +22.47% | +26.18%Best |
| 5Y Return (annualized) | +12.74% | +15.42%Best |
| Volatility (annualized) | 16.6%Best | 20.8% |
| Max Drawdown | -35.8% | -35.1%Best |
| $10,000 over 5 years | $18,213 | $20,484Best |
| Top 10 Weight | 33.0%Best | 46.7% |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Dec 4, 2019 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Dec 4, 2019 to Oct 14, 2026 (6.9 years).
AFLG vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.9 years both funds cover.
AFLG vs QQQ Performance
First Trust Active Factor Large Cap ETF (AFLG) is an ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year AFLG returned +17.70% while QQQ returned +22.47%. Year to date, AFLG is up 14.82% versus a gain of 19.30% for QQQ.
Over three years, AFLG compounded at +22.47% per year against +26.18% for QQQ; over five years the annualized figures are +12.74% and +15.42% respectively. Across the full 7-year window we track, QQQ has the edge at +21.12% annualized vs +13.51%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.8% compared with 16.6% for AFLG. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -35.8% for AFLG and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AFLG charges 0.55% per year while QQQ charges 0.18%. On a $10,000 position that is $55 vs $18 annually, a gap of $37 per year that compounds over a long holding period. On income, AFLG currently yields 0.71% against 0.42% for QQQ.
Holdings Overlap
39.7% of AFLG's money is in holdings QQQ also owns. 63.0% of QQQ's money is in holdings AFLG also owns.
The two portfolios partly overlap.
36 positions in common, counted across the 218 positions we hold weights for in AFLG and 101 in QQQ, against full books of 435 and 321.
What only one of them owns
Our book lists 57 positions for QQQ that do not appear in our book for AFLG (33.3% of the fund), and 178 for AFLG that do not appear in QQQ (58.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in AFLG | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 7.85% | 8.33% | 0.48% |
| AAPLApple, Inc | 6.58% | 7.35% | 0.77% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 4.00% | 5.76% | 1.76% |
| GOOGLAlphabet Inc-cl A | 5.62% | 3.05% | 2.57% |
| AMZNAmazon.Com Inc | 2.37% | 4.07% | 1.70% |
| MUMicron Technology, Inc. | 0.36% | 5.02% | 4.66% |
| AVGOBroadcom Inc | 2.50% | 2.53% | 0.03% |
| AMDAdvanced Micro Devices Inc. | 0.36% | 4.17% | 3.81% |
| METAMeta Platform Inc | 0.79% | 3.26% | 2.47% |
| TSLATesla Motors Inc | 0.28% | 2.82% | 2.54% |
63.0% of QQQ is already inside AFLG.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, AFLG or QQQ?
AFLG has an expense ratio of 0.55% while QQQ charges 0.18%. QQQ is the cheaper option, by $37 a year on a $10,000 investment.
Which performed better, AFLG or QQQ?
Over the past year AFLG returned +17.70% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), AFLG annualized +13.51% vs +21.12% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AFLG or QQQ?
QQQ has been the more volatile fund at 20.8% annualized versus 16.6% for AFLG. Worst drawdown: AFLG -35.8% vs QQQ -35.1%.
Should I hold both AFLG and QQQ?
AFLG and QQQ have a monthly-return correlation of 0.84, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between AFLG and QQQ?
63.0% of QQQ's money is in holdings AFLG also owns. 63.0% of QQQ's is in holdings AFLG also owns. They hold 36 positions in common, counted across the 218 positions we hold weights for in AFLG and 101 in QQQ.
Which pays a higher dividend, AFLG or QQQ?
AFLG yields 0.71% while QQQ yields 0.42%, so AFLG currently pays the higher dividend yield.
Is QQQ better than AFLG?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. AFLG is less concentrated, with 33.0% of the fund in its ten largest positions against 46.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.