FDTS vs QQQ
First Trust Developed Markets ex-US Small Cap AlphaDEX Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FDTS delivered stronger 1-year returns. FDTS offers more diversification with 412 holdings.
Side-by-Side Comparison
| Metric | FDTS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.18% | |
| AUM | $14M | $496.3B | |
| Dividend Yield | 2.87% | 0.44% | |
| Holdings | 412 | 108 | |
| YTD Return | +20.56% | +17.07% | |
| 1Y Return | +35.49% | +26.39% | |
| 3Y Return (annualized) | +26.46% | +26.08% | |
| 5Y Return (annualized) | +12.31% | +15.18% | |
| Volatility (annualized) | 18.1% | 30.6% | |
| Max Drawdown | -53.2% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 15, 2012 | Mar 10, 1999 |
FDTS vs QQQ Performance
First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS) 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 FDTS returned +35.49% while QQQ returned +26.39%. Year to date, FDTS is up 20.56% versus a gain of 17.07% for QQQ.
Over three years, FDTS compounded at +26.46% per year against +26.08% for QQQ; over five years the annualized figures are +12.31% and +15.18% respectively. Across the full 15-year window we track, QQQ has the edge at +13.05% annualized vs +7.21%. 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 18.1% for FDTS. 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 -53.2% for FDTS 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FDTS 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, FDTS currently yields 2.87% against 0.44% for QQQ.
Holdings Overlap
FDTS and QQQ share 0 holdings out of 501 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FDTS or QQQ?
FDTS 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, FDTS or QQQ?
Over the past year FDTS returned +35.49% vs +26.39% for QQQ, so FDTS leads on 1-year performance. Over the longest common window we track (15 years), FDTS annualized +7.21% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, FDTS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.1% for FDTS. Worst drawdown: FDTS -53.2% vs QQQ -83.0%.
Should I hold both FDTS and QQQ?
FDTS and QQQ have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDTS and QQQ?
FDTS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 501 unique securities.
Which pays a higher dividend, FDTS or QQQ?
FDTS yields 2.87% while QQQ yields 0.44%, so FDTS currently pays the higher dividend yield.
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