FNK vs QQQ
First Trust Mid Cap Value AlphaDEX Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FNK offers more diversification with 226 holdings.
Side-by-Side Comparison
| Metric | FNK | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.74% | 0.18% | |
| AUM | $233M | $496.3B | |
| Dividend Yield | 1.43% | 0.44% | |
| Holdings | 226 | 108 | |
| YTD Return | +16.07% | +16.64% | |
| 1Y Return | +21.58% | +27.27% | |
| 3Y Return (annualized) | +14.19% | +25.96% | |
| 5Y Return (annualized) | +9.31% | +14.54% | |
| Volatility (annualized) | 20.4% | 30.6% | |
| Max Drawdown | -52.1% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 19, 2011 | Mar 10, 1999 |
FNK vs QQQ Performance
First Trust Mid Cap Value AlphaDEX Fund (FNK) 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 FNK returned +21.58% while QQQ returned +27.27%. Year to date, FNK is up 16.07% versus a gain of 16.64% for QQQ.
Over three years, FNK compounded at +14.19% per year against +25.96% for QQQ; over five years the annualized figures are +9.31% and +14.54% respectively. Across the full 15-year window we track, QQQ has the edge at +13.03% annualized vs +8.48%. 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 20.4% for FNK. 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 -52.1% for FNK 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
FNK charges 0.74% per year while QQQ charges 0.18%. On a $10,000 position that is $74 vs $18 annually, a gap of $56 per year that compounds over a long holding period. On income, FNK currently yields 1.43% against 0.44% for QQQ.
Holdings Overlap
FNK and QQQ share 0 holdings out of 327 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, FNK or QQQ?
FNK has an expense ratio of 0.74% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, FNK or QQQ?
Over the past year FNK returned +21.58% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), FNK annualized +8.48% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, FNK or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.4% for FNK. Worst drawdown: FNK -52.1% vs QQQ -83.0%.
Should I hold both FNK and QQQ?
FNK 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 FNK and QQQ?
FNK and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 327 unique securities.
Which pays a higher dividend, FNK or QQQ?
FNK yields 1.43% while QQQ yields 0.44%, so FNK currently pays the higher dividend yield.
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