FEX vs QQQ

FEX vs QQQ

Which is better, FEX or QQQ?

Large Cap Blend against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FEX is less concentrated, with 5.4% of the fund in its ten largest positions against 46.5%.

Lower Fees: QQQHigher Returns: QQQLess Concentrated: FEX

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

MetricFEXQQQ
Expense Ratio0.57%0.18%Best
AUM$1.6B$486.1B
Dividend Yield0.95%0.44%
Holdings752107
YTD Return+15.60%+17.54%Best
1Y Return+21.31%+25.59%Best
3Y Return (annualized)+19.33%+24.63%Best
5Y Return (annualized)+10.55%+14.18%Best
Volatility (annualized)17.1%Best18.9%
Max Drawdown-59.7%-53.5%Best
$10,000 over 5 years$16,512$19,407Best
Top 10 Weight5.4%Best46.5%
Fund FamilyFirst Trust Portfolios (US)Invesco (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Growth
InceptionMay 8, 2007Mar 10, 1999

Volatility and max drawdown are measured over the window both funds cover: May 10, 2007 to Sep 4, 2026 (19.3 years).

FEX 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 19.3 years both funds cover.

FEX vs QQQ Performance

First Trust Large Cap Core AlphaDEX Fund (FEX) 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 FEX returned +21.31% while QQQ returned +25.59%. Year to date, FEX is up 15.60% versus a gain of 17.54% for QQQ.

Over three years, FEX compounded at +19.33% per year against +24.63% for QQQ; over five years the annualized figures are +10.55% and +14.18% respectively. Across the full 19-year window we track, QQQ has the edge at +15.46% annualized vs +8.60%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 18.9% 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 -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 0.84. 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 0.95% against 0.44% for QQQ.

Holdings Overlap

FEX already in QQQ16.5%
QQQ already in FEX64.8%

16.5% of FEX's money is in holdings QQQ also owns. 64.8% of QQQ's money is in holdings FEX also owns.

The two portfolios partly overlap.

61 positions in common, counted across the 369 positions we hold weights for in FEX and 102 in QQQ, against full books of 752 and 107.

What only one of them owns

Our book lists 35 positions for QQQ that do not appear in our book for FEX (32.7% of the fund), and 300 for FEX that do not appear in QQQ (79.9%).

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

StockWeight in FEXWeight in QQQDifference
NVDANvidia Corp.0.29%8.44%8.15%
AAPLApple, Inc0.19%7.27%7.08%
AMZNAmazon.Com Inc0.20%4.67%4.47%
MUMicron Technology, Inc.0.34%4.43%4.09%
AMDAdvanced Micro Devices Inc0.36%3.45%3.09%
GOOGLAlphabet Inc.Class A0.36%3.36%3.00%
AVGOBroadcom Inc0.29%3.16%2.87%
WMTWalmart, Inc.0.09%2.41%2.32%
CSCOCisco Systems Inc. - Ordinary Shares0.36%2.10%1.74%
AMATApplied Materials, Inc.0.26%1.86%1.60%

64.8% of QQQ is already inside FEX.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

FEXQQQ

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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, by $39 a year on a $10,000 investment.

Which performed better, FEX or QQQ?

Over the past year FEX returned +21.31% vs +25.59% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), FEX annualized +8.60% vs +15.46% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FEX or QQQ?

QQQ has been the more volatile fund at 18.9% annualized versus 17.1% for FEX. Worst drawdown: FEX -59.7% vs QQQ -53.5%.

Should I hold both FEX and QQQ?

FEX and QQQ have a monthly-return correlation of 0.84, 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 FEX and QQQ?

64.8% of QQQ's money is in holdings FEX also owns. 64.8% of QQQ's is in holdings FEX also owns. They hold 61 positions in common, counted across the 369 positions we hold weights for in FEX and 102 in QQQ.

Which pays a higher dividend, FEX or QQQ?

FEX yields 0.95% while QQQ yields 0.44%, so FEX currently pays the higher dividend yield.

Is QQQ better than FEX?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FEX is less concentrated, with 5.4% 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.