FXA vs QQQ
Invesco CurrencyShares Australian Dollar Trust 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 103 holdings.
Side-by-Side Comparison
| Metric | FXA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.18% | |
| AUM | $97M | $455.8B | |
| Dividend Yield | 0.97% | 0.41% | |
| Holdings | 2 | 108 | |
| YTD Return | +6.05% | +18.31% | |
| 1Y Return | +9.19% | +25.37% | |
| 3Y Return (annualized) | +4.14% | +25.79% | |
| 5Y Return (annualized) | +0.03% | +15.20% | |
| Volatility (annualized) | 12.3% | 30.6% | |
| Max Drawdown | -47.9% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Jun 21, 2006 | Mar 10, 1999 |
FXA vs QQQ Performance
Invesco CurrencyShares Australian Dollar Trust (FXA) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FXA returned +9.19% while QQQ returned +25.37%. Year to date, FXA is up 6.05% versus a gain of 18.31% for QQQ.
Over three years, FXA compounded at +4.14% per year against +25.79% for QQQ; over five years the annualized figures are +0.03% and +15.20% respectively. Across the full 20-year window we track, QQQ has the edge at +13.10% annualized vs -0.02%. 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 12.3% for FXA. 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 -47.9% for FXA 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXA charges 0.40% per year while QQQ charges 0.18%. On a $10,000 position that is $40 vs $18 annually, a gap of $22 per year that compounds over a long holding period. On income, FXA currently yields 0.97% against 0.41% for QQQ.
Frequently Asked Questions
Which is cheaper, FXA or QQQ?
FXA has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, FXA or QQQ?
Over the past year FXA returned +9.19% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), FXA annualized -0.02% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, FXA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.3% for FXA. Worst drawdown: FXA -47.9% vs QQQ -83.0%.
Should I hold both FXA and QQQ?
FXA and QQQ have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, FXA or QQQ?
FXA yields 0.97% while QQQ yields 0.41%, so FXA currently pays the higher dividend yield.
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