FGM vs QQQ
First Trust Germany AlphaDEX Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | FGM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.18% | |
| AUM | $98M | $496.3B | |
| Dividend Yield | 1.40% | 0.44% | |
| Holdings | 42 | 108 | |
| YTD Return | +0.32% | +16.23% | |
| 1Y Return | +10.58% | +26.23% | |
| 3Y Return (annualized) | +20.16% | +25.75% | |
| 5Y Return (annualized) | +4.42% | +14.78% | |
| Volatility (annualized) | 19.8% | 30.6% | |
| Max Drawdown | -53.6% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 14, 2012 | Mar 10, 1999 |
FGM vs QQQ Performance
First Trust Germany AlphaDEX Fund (FGM) 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 FGM returned +10.58% while QQQ returned +26.23%. Year to date, FGM is up 0.32% versus a gain of 16.23% for QQQ.
Over three years, FGM compounded at +20.16% per year against +25.75% for QQQ; over five years the annualized figures are +4.42% and +14.78% respectively. Across the full 15-year window we track, QQQ has the edge at +13.02% annualized vs +6.06%. 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 19.8% for FGM. 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 -53.6% for FGM 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FGM 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, FGM currently yields 1.40% against 0.44% for QQQ.
Holdings Overlap
FGM and QQQ share 0 holdings out of 142 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, FGM or QQQ?
FGM 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, FGM or QQQ?
Over the past year FGM returned +10.58% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), FGM annualized +6.06% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FGM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.8% for FGM. Worst drawdown: FGM -53.6% vs QQQ -83.0%.
Should I hold both FGM and QQQ?
FGM and QQQ have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FGM and QQQ?
FGM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 142 unique securities.
Which pays a higher dividend, FGM or QQQ?
FGM yields 1.40% while QQQ yields 0.44%, so FGM currently pays the higher dividend yield.
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