FAB vs QQQ
First Trust Multi Cap Value AlphaDEX Fund vs Invesco QQQ Trust, Series 1
Which is better, FAB or QQQ?
Mid Cap Value against Large Cap Growth.
QQQ has a lower expense ratio. FAB led over 1Y, QQQ over 3Y, 5Y and the full window. FAB is less concentrated, with 5.5% of the fund in its ten largest positions against 46.5%.
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 | FAB | QQQ |
|---|---|---|
| Expense Ratio | 0.66% | 0.18%Best |
| AUM | $191M | $483.5B |
| Dividend Yield | 1.51% | 0.44% |
| Holdings | 1,350 | 107 |
| YTD Return | +16.15%Best | +15.21% |
| 1Y Return | +20.79%Best | +19.78% |
| 3Y Return (annualized) | +15.24% | +24.58%Best |
| 5Y Return (annualized) | +9.90% | +13.93%Best |
| Volatility (annualized) | 20.5% | 18.9%Best |
| Max Drawdown | -64.3% | -53.5%Best |
| $10,000 over 5 years | $16,032 | $19,195Best |
| Top 10 Weight | 5.5%Best | 46.5% |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Mid Cap Value | Large Cap Growth |
| Inception | May 8, 2007 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: May 11, 2007 to Sep 16, 2026 (19.4 years).
FAB 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 19.4 years both funds cover.
FAB vs QQQ Performance
First Trust Multi Cap Value AlphaDEX Fund (FAB) 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 FAB returned +20.79% while QQQ returned +19.78%. Year to date, FAB is up 16.15% versus a gain of 15.21% for QQQ.
Over three years, FAB compounded at +15.24% per year against +24.58% for QQQ; over five years the annualized figures are +9.90% and +13.93% respectively. Across the full 19-year window we track, QQQ has the edge at +15.24% annualized vs +7.16%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAB has been the more volatile fund, with annualized monthly volatility of 20.5% compared with 18.9% for QQQ. 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 -64.3% for FAB and -53.5% 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FAB charges 0.66% per year while QQQ charges 0.18%. On a $10,000 position that is $66 vs $18 annually, a gap of $48 per year that compounds over a long holding period. On income, FAB currently yields 1.51% against 0.44% for QQQ.
Holdings Overlap
4.8% of FAB's money is in holdings QQQ also owns. 6.1% of QQQ's money is in holdings FAB also owns.
QQQ and FAB share little of their money.
17 positions in common, counted across the 657 positions we hold weights for in FAB and 102 in QQQ, against full books of 1,350 and 107.
What only one of them owns
Our book lists 79 positions for QQQ that do not appear in our book for FAB (91.5% of the fund), and 621 for FAB that do not appear in QQQ (89.9%).
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 FAB | Weight in QQQ | Difference |
|---|---|---|---|
| TMUST-Mobile Us Inc Com Usd0.00001 | 0.37% | 0.82% | 0.45% |
| LINLinde Plc Ordinary Shares | 0.08% | 1.00% | 0.92% |
| PEPPepsico Inc. | 0.09% | 0.83% | 0.74% |
| CMCSAComcast Corp-class A Cmcsa | 0.46% | 0.39% | 0.07% |
| REGNRegeneron Pharmaceuticals, Inc. | 0.44% | 0.35% | 0.09% |
| PYPLPaypay Holdings, Inc. | 0.52% | 0.22% | 0.30% |
| FANGDiamondback Energy, Inc. | 0.39% | 0.23% | 0.16% |
| ROPRoper Technologies Inc. | 0.43% | 0.17% | 0.26% |
| BKRBaker Hughes Co | 0.29% | 0.27% | 0.02% |
| EXCExelon | 0.32% | 0.21% | 0.11% |
You are not choosing between two funds in isolation.
Whichever of FAB and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FAB or QQQ?
FAB has an expense ratio of 0.66% while QQQ charges 0.18%. QQQ is the cheaper option, by $48 a year on a $10,000 investment.
Which performed better, FAB or QQQ?
Over the past year FAB returned +20.79% vs +19.78% for QQQ, so FAB leads on 1-year performance. Over the longest common window we track (19 years), FAB annualized +7.16% vs +15.24% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FAB or QQQ?
FAB has been the more volatile fund at 20.5% annualized versus 18.9% for QQQ. Worst drawdown: FAB -64.3% vs QQQ -53.5%.
Should I hold both FAB and QQQ?
FAB and QQQ have a monthly-return correlation of 0.72, 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 FAB and QQQ?
6.1% of QQQ's money is in holdings FAB also owns. 6.1% of QQQ's is in holdings FAB also owns. They hold 17 positions in common, counted across the 657 positions we hold weights for in FAB and 102 in QQQ.
Which pays a higher dividend, FAB or QQQ?
FAB yields 1.51% while QQQ yields 0.44%, so FAB currently pays the higher dividend yield.
Is QQQ better than FAB?
QQQ has a lower expense ratio. FAB led over 1Y, QQQ over 3Y, 5Y and the full window. FAB is less concentrated, with 5.5% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.