FKU vs QQQ
First Trust United Kingdom 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 | FKU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.18% | |
| AUM | $39M | $496.3B | |
| Dividend Yield | 3.68% | 0.44% | |
| Holdings | 79 | 108 | |
| YTD Return | +13.20% | +16.23% | |
| 1Y Return | +23.32% | +26.23% | |
| 3Y Return (annualized) | +24.24% | +25.75% | |
| 5Y Return (annualized) | +9.26% | +14.78% | |
| Volatility (annualized) | 19.7% | 30.6% | |
| Max Drawdown | -58.7% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 14, 2012 | Mar 10, 1999 |
FKU vs QQQ Performance
First Trust United Kingdom AlphaDEX Fund (FKU) 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 FKU returned +23.32% while QQQ returned +26.23%. Year to date, FKU is up 13.20% versus a gain of 16.23% for QQQ.
Over three years, FKU compounded at +24.24% per year against +25.75% for QQQ; over five years the annualized figures are +9.26% and +14.78% respectively. Across the full 15-year window we track, QQQ has the edge at +13.02% annualized vs +5.85%. 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 19.7% for FKU. 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 -58.7% for FKU 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FKU 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, FKU currently yields 3.68% against 0.44% for QQQ.
Holdings Overlap
FKU and QQQ share 0 holdings out of 178 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, FKU or QQQ?
FKU 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, FKU or QQQ?
Over the past year FKU returned +23.32% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), FKU annualized +5.85% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FKU or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.7% for FKU. Worst drawdown: FKU -58.7% vs QQQ -83.0%.
Should I hold both FKU and QQQ?
FKU and QQQ have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FKU and QQQ?
FKU and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 178 unique securities.
Which pays a higher dividend, FKU or QQQ?
FKU yields 3.68% while QQQ yields 0.44%, so FKU currently pays the higher dividend yield.
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