FDT vs QQQ
First Trust Developed Markets Ex-US AlphaDEX Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FDT delivered stronger 1-year returns. FDT offers more diversification with 312 holdings.
Side-by-Side Comparison
| Metric | FDT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.18% | |
| AUM | $1.3B | $496.3B | |
| Dividend Yield | 2.88% | 0.44% | |
| Holdings | 312 | 108 | |
| YTD Return | +19.34% | +17.07% | |
| 1Y Return | +34.10% | +26.39% | |
| 3Y Return (annualized) | +27.14% | +26.08% | |
| 5Y Return (annualized) | +13.11% | +15.18% | |
| Volatility (annualized) | 17.1% | 30.6% | |
| Max Drawdown | -48.6% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 18, 2011 | Mar 10, 1999 |
FDT vs QQQ Performance
First Trust Developed Markets Ex-US AlphaDEX Fund (FDT) is a ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FDT returned +34.10% while QQQ returned +26.39%. Year to date, FDT is up 19.34% versus a gain of 17.07% for QQQ.
Over three years, FDT compounded at +27.14% per year against +26.08% for QQQ; over five years the annualized figures are +13.11% and +15.18% respectively. Across the full 15-year window we track, QQQ has the edge at +13.05% annualized vs +5.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 17.1% for FDT. 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 -48.6% for FDT and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDT charges 0.80% per year while QQQ charges 0.18%. On a $10,000 position that is $80 vs $18 annually, a gap of $62 per year that compounds over a long holding period. On income, FDT currently yields 2.88% against 0.44% for QQQ.
Holdings Overlap
FDT and QQQ share 1 holdings out of 396 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FDT | Weight in QQQ | Difference |
|---|---|---|---|
| SHOP:CA | 0.15% | 0.77% | 0.62% |
Frequently Asked Questions
Which is cheaper, FDT or QQQ?
FDT has an expense ratio of 0.80% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, FDT or QQQ?
Over the past year FDT returned +34.10% vs +26.39% for QQQ, so FDT leads on 1-year performance. Over the longest common window we track (15 years), FDT annualized +5.58% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, FDT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.1% for FDT. Worst drawdown: FDT -48.6% vs QQQ -83.0%.
Should I hold both FDT and QQQ?
FDT and QQQ have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDT and QQQ?
FDT and QQQ share 1 common holdings with a 0.1% weight overlap. Combined, they hold 396 unique securities.
Which pays a higher dividend, FDT or QQQ?
FDT yields 2.88% while QQQ yields 0.44%, so FDT currently pays the higher dividend yield.
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