FIAX vs QQQ
Nicholas Fixed Income Alternative ETF 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 | FIAX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.97% | 0.18% | |
| AUM | $128M | $496.3B | |
| Dividend Yield | 8.20% | 0.44% | |
| Holdings | 11 | 108 | |
| YTD Return | +1.74% | +19.52% | |
| 1Y Return | +4.04% | +26.68% | |
| 3Y Return (annualized) | +3.30% | +26.64% | |
| 5Y Return (annualized) | - | +15.36% | |
| Volatility (annualized) | 3.5% | 30.6% | |
| Max Drawdown | -6.3% | -83.0% | |
| Fund Family | XFunds | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Nov 29, 2022 | Mar 10, 1999 |
FIAX vs QQQ Performance
Nicholas Fixed Income Alternative ETF (FIAX) is a ETF from XFunds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FIAX returned +4.04% while QQQ returned +26.68%. Year to date, FIAX is up 1.74% versus a gain of 19.52% for QQQ.
Over three years, FIAX compounded at +3.30% per year against +26.64% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.14% annualized vs +3.22%. 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 3.5% for FIAX. 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 -6.3% for FIAX 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FIAX charges 0.97% per year while QQQ charges 0.18%. On a $10,000 position that is $97 vs $18 annually, a gap of $79 per year that compounds over a long holding period. On income, FIAX currently yields 8.20% against 0.44% for QQQ.
Holdings Overlap
FIAX and QQQ share 0 holdings out of 106 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, FIAX or QQQ?
FIAX has an expense ratio of 0.97% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $79 per year of difference.
Which performed better, FIAX or QQQ?
Over the past year FIAX returned +4.04% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), FIAX annualized +3.22% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, FIAX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.5% for FIAX. Worst drawdown: FIAX -6.3% vs QQQ -83.0%.
Should I hold both FIAX and QQQ?
FIAX and QQQ have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FIAX and QQQ?
FIAX and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, FIAX or QQQ?
FIAX yields 8.20% while QQQ yields 0.44%, so FIAX currently pays the higher dividend yield.
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