FEX vs QQQ
First Trust Large Cap Core AlphaDEX Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FEX delivered stronger 1-year returns. FEX offers more diversification with 369 holdings.
Side-by-Side Comparison
| Metric | FEX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.57% | 0.18% | |
| AUM | $1.6B | $455.8B | |
| Dividend Yield | 0.96% | 0.41% | |
| Holdings | 377 | 108 | |
| YTD Return | +17.38% | +17.46% | |
| 1Y Return | +27.15% | +26.02% | |
| 3Y Return (annualized) | +19.57% | +25.51% | |
| 5Y Return (annualized) | +10.97% | +15.12% | |
| Volatility (annualized) | 17.1% | 30.6% | |
| Max Drawdown | -59.7% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Mar 10, 1999 |
FEX vs QQQ Performance
First Trust Large Cap Core AlphaDEX Fund (FEX) 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 FEX returned +27.15% while QQQ returned +26.02%. Year to date, FEX is up 17.38% versus a gain of 17.46% for QQQ.
Over three years, FEX compounded at +19.57% per year against +25.51% for QQQ; over five years the annualized figures are +10.97% and +15.12% respectively. Across the full 19-year window we track, QQQ has the edge at +13.08% annualized vs +8.72%. 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 FEX. 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 -59.7% for FEX 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FEX charges 0.57% per year while QQQ charges 0.18%. On a $10,000 position that is $57 vs $18 annually, a gap of $39 per year that compounds over a long holding period. On income, FEX currently yields 0.96% against 0.41% for QQQ.
Holdings Overlap
FEX and QQQ share 60 holdings out of 412 unique holdings combined, representing a 13.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FEX or QQQ?
FEX has an expense ratio of 0.57% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $39 per year of difference.
Which performed better, FEX or QQQ?
Over the past year FEX returned +27.15% vs +26.02% for QQQ, so FEX leads on 1-year performance. Over the longest common window we track (19 years), FEX annualized +8.72% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, FEX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.1% for FEX. Worst drawdown: FEX -59.7% vs QQQ -83.0%.
Should I hold both FEX and QQQ?
FEX and QQQ have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FEX and QQQ?
FEX and QQQ share 60 common holdings with a 13.9% weight overlap. Combined, they hold 412 unique securities.
Which pays a higher dividend, FEX or QQQ?
FEX yields 0.96% while QQQ yields 0.41%, so FEX currently pays the higher dividend yield.
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