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ETF Comparison

FDN vs QQQ: Which Is the Better Pick in 2026?

A head-to-head comparison of First Trust Dow Jones Internet Index Fund and Invesco QQQ Trust covering yield, cost, risk, and income potential.

Data updated September 18, 2026

Best for

  • FDNInvestors who want broad equity exposure.
  • QQQInvestors who want higher current income (0.45% while FDN makes no distribution).

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings.

FDN has lagged QQQ over the trailing twelve months, posting a 1.33% total return against 22.87%. The lead holds up over 10 years too: QQQ has compounded at 20.80% a year, against 13.81% for FDN. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince Jun 2006Volatility Sharpe Sortino Max drawdown
FDN8.51%1.33%20.06%3.15%13.81%13.97%21.8%0.630.89-25.0%
QQQ17.95%22.87%25.51%14.73%20.80%16.52%20.4%0.901.29-22.8%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 18, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Jun 2006” measures every fund from June 23, 2006 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricFDNQQQ
Full nameFirst Trust Dow Jones Internet Index FundInvesco QQQ Trust
IssuerFirst TrustInvesco
Underlying indexFirst Trust Dow Jones Internet IndexNasdaq-100 Index
Last Close$288.14 as of September 18, 2026$721.45 as of September 18, 2026
Distribution rate—0.45%
Distribution Safety Score™ —97
Safety-Adjusted Yield —0.44%
Expense ratio0.49%0.18%
AUM$5.27B$475B
Distribution frequencyNoneQuarterly
Objective—Track the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks.
Asset classEquityEquity
Inception date06/19/200603/10/1999
Beta1.241.26
Last dividend—$0.8135
Ex-dividend date12/21/201106/22/2026

Bottom lineChoose FDN if you want broad equity exposure. Choose QQQ if you want higher current income (0.45% while FDN makes no distribution).

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

First Trust
ETFs319
Total AUM$286B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

First Trust is known for offering a diverse lineup of actively and passively managed ETFs across multiple investment styles and asset classes. Their fund families span income-focused strategies including dividend and covered call approaches, as well as thematic, factor-based, alternatives, and sector-specific offerings that appeal to different investor objectives. The issuer provides breadth across allocation, bond, buffer, commodities, and municipal fund categories, making them a comprehensive provider serving various portfolio construction and income-generation needs.

See our curated list of related YouTube videos on FDN.

See all First Trust ETFs
Invesco
ETFs246
Total AUM$980B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Invesco is a major ETF provider known for offering a comprehensive lineup spanning multiple asset classes and investment strategies. The company specializes in income-focused products including dividend, covered call, and bond strategies, while also maintaining broad exposure across equity, factor-based, thematic, and ESG investing themes. Invesco's portfolio ranges from index-tracking funds to alternatives and specialized offerings like digital assets and BulletShares, making it one of the more expansive ETF families available to investors.

See our curated list of related YouTube videos on QQQ.

See all Invesco ETFs

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Quick verdict

FDN (First Trust Dow Jones Internet Index Fund) and QQQ (Invesco QQQ Trust) are both ETFs, but they take different approaches.

QQQ currently shows a 0.45% distribution yield. FDN has not yet established a full distribution history, so a comparable yield figure is not available.

QQQ is cheaper with an expense ratio of 0.18% compared to 0.49%.

They have different reference exposures: FDN is linked to First Trust Dow Jones Internet Index while QQQ is linked to Nasdaq-100 Index, which means their performance drivers differ.

QQQ is the larger fund by assets ($475B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, FDN has no reported distribution yield yet, so a monthly income estimate is not available, while QQQ would produce $3.75/month, at current distribution rates.

FDN yield—
QQQ yield0.45%

Cost & efficiency

Over 10 years on $10,000, FDN would cost approximately $490 in fees vs $180 for QQQ (simplified, not compounded). The $310.00 difference may be offset by yield or performance.

FDN ER0.49%
QQQ ER0.18%

Strategy & risk

FDN tracks First Trust Dow Jones Internet Index with a technology approach, while QQQ tracks Nasdaq-100 Index with a growth approach. Beta is 1.24 for FDN and 1.26 for QQQ — effectively similar market sensitivity.

FDN beta1.24
QQQ beta1.26

Fund details

FDN is managed by First Trust (launched 06/19/2006) with $5.27B in assets. QQQ is managed by Invesco (launched 03/10/1999) with $475B in assets.

FDN AUM$5.27B
QQQ AUM$475B
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Frequently asked questions

Which of FDN or QQQ pays more dividend income?

QQQ currently reports a distribution yield, while FDN has not yet established a full distribution history. A direct income comparison is not yet meaningful — check back once both funds have published several consecutive distributions.

What is the difference between FDN and QQQ?

FDN (First Trust Dow Jones Internet Index Fund) tracks First Trust Dow Jones Internet Index with a technology approach, while QQQ (Invesco QQQ Trust) tracks Nasdaq-100 Index with a growth approach. They are issued by First Trust and Invesco respectively.

Can I hold both FDN and QQQ?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Which has lower fees, FDN or QQQ?

FDN has an expense ratio of 0.49% while QQQ charges 0.18%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in FDN vs QQQ generate?

At current rates, FDN has not established a distribution history yet, so a monthly income estimate is not available. The same in QQQ would produce about $3.75 per month ($45.00 annually).

Which has performed better historically, FDN or QQQ?

FDN has lagged QQQ over the trailing twelve months, posting a 1.33% total return against 22.87%. The lead holds up over 10 years too: QQQ has compounded at 20.80% a year, against 13.81% for FDN. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

FDN vs QQQ — at a glance

Generated September 19, 2026.

Overview

FDN and QQQ are both passive equity ETFs tracking technology-heavy indexes, but they differ significantly in scope and composition. FDN targets internet and web-based companies via the Dow Jones Internet Index, while QQQ tracks the 100 largest non-financial stocks on the Nasdaq, which includes a broader technology mandate alongside consumer discretionary, communications, and other growth sectors.

How they differ

The biggest difference is breadth: QQQ's Nasdaq-100 holds 100 stocks across multiple growth-oriented sectors, while FDN focuses specifically on internet-related companies—a narrower slice of the technology landscape. That focus makes FDN more concentrated by design and likely more volatile; its beta of 1.24 exceeds QQQ's 1.26 only slightly, but the underlying index construction diverges.

Who each is best for

  • FDN: Fits investors who want concentrated exposure to pure-play internet and e-commerce companies and are willing to accept narrower sector focus and higher fees for that specificity.
  • QQQ: Designed for investors seeking broad large-cap technology and growth exposure with minimal cost drag and those who value quarterly dividend income alongside capital appreciation.

Key risks to know

  • Concentration in mega-cap tech: Both funds hold significant overlapping positions in the largest technology stocks (Apple, Microsoft, Nvidia, Tesla, etc.), so their returns may be tightly correlated despite different mandates. If mega-cap growth underperforms, both funds will likely suffer together.
  • Sector-specific drawdown risk: FDN's narrower internet-company focus amplifies downside when e-commerce, online advertising, or web-based business models face cyclical headwinds. QQQ's broader Nasdaq-100 composition spreads that risk across more sectors.
  • Elevated valuations and beta: Both funds hold primarily high-growth, often unprofitable or early-profit-stage companies. QQQ's beta of 1.26 and FDN's 1.24 indicate above-market volatility, meaning both will swing harder than the S&P 500 in drawdowns.
  • No income floor in FDN: FDN's lack of any distribution means the fund's return depends entirely on price appreciation. In flat or down markets, there is no yield cushion.

Bottom line

If you want to track the 100 largest Nasdaq stocks at the lowest cost with some quarterly income, QQQ's scale, fee advantage (0.18% vs. 0.49%), and $475B in assets make it the more economical choice for broad tech-growth exposure. If you specifically want internet-company concentration and are comfortable with no dividend payout, FDN's thematic focus may align with your conviction—but you'll pay more in fees to get it. Both funds carry significant volatility and concentration risk in mega-cap technology; verify that the overlap in holdings matches your actual portfolio exposure before combining them. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Dividend growth vs. high yield Yield on cost, explained How expense ratios eat returns

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