FEP vs QQQ
First Trust Europe AlphaDEX Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FEP offers more diversification with 209 holdings.
Side-by-Side Comparison
| Metric | FEP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.18% | |
| AUM | $511M | $455.8B | |
| Dividend Yield | 2.95% | 0.41% | |
| Holdings | 209 | 108 | |
| YTD Return | +11.99% | +19.68% | |
| 1Y Return | +22.49% | +26.75% | |
| 3Y Return (annualized) | +24.42% | +26.25% | |
| 5Y Return (annualized) | +9.89% | +15.39% | |
| Volatility (annualized) | 19.1% | 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 |
FEP vs QQQ Performance
First Trust Europe AlphaDEX Fund (FEP) 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 FEP returned +22.49% while QQQ returned +26.75%. Year to date, FEP is up 11.99% versus a gain of 19.68% for QQQ.
Over three years, FEP compounded at +24.42% per year against +26.25% for QQQ; over five years the annualized figures are +9.89% and +15.39% respectively. Across the full 15-year window we track, QQQ has the edge at +13.15% annualized vs +5.74%. 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 19.1% for FEP. 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 FEP 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FEP 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, FEP currently yields 2.95% against 0.41% for QQQ.
Holdings Overlap
FEP and QQQ share 1 holdings out of 303 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FEP | Weight in QQQ | Difference |
|---|---|---|---|
| ASML:AS | 0.52% | 0.70% | 0.18% |
Frequently Asked Questions
Which is cheaper, FEP or QQQ?
FEP 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, FEP or QQQ?
Over the past year FEP returned +22.49% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), FEP annualized +5.74% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, FEP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.1% for FEP. Worst drawdown: FEP -48.6% vs QQQ -83.0%.
Should I hold both FEP and QQQ?
FEP and QQQ have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FEP and QQQ?
FEP and QQQ share 1 common holdings with a 0.5% weight overlap. Combined, they hold 303 unique securities.
Which pays a higher dividend, FEP or QQQ?
FEP yields 2.95% while QQQ yields 0.41%, so FEP currently pays the higher dividend yield.
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