FXC vs QQQ
Invesco CurrencyShares Canadian 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 | FXC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.18% | |
| AUM | $69M | $455.8B | |
| Dividend Yield | 0.27% | 0.41% | |
| Holdings | 2 | 108 | |
| YTD Return | -1.45% | +18.31% | |
| 1Y Return | -0.98% | +25.37% | |
| 3Y Return (annualized) | -0.05% | +25.79% | |
| 5Y Return (annualized) | -1.22% | +15.20% | |
| Volatility (annualized) | 8.7% | 30.6% | |
| Max Drawdown | -37.9% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Jun 21, 2006 | Mar 10, 1999 |
FXC vs QQQ Performance
Invesco CurrencyShares Canadian Dollar Trust (FXC) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FXC returned -0.98% while QQQ returned +25.37%. Year to date, FXC is down 1.45% versus a gain of 18.31% for QQQ.
Over three years, FXC compounded at -0.05% per year against +25.79% for QQQ; over five years the annualized figures are -1.22% and +15.20% respectively. Across the full 20-year window we track, QQQ has the edge at +13.10% annualized vs -0.94%. 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 8.7% for FXC. 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 -37.9% for FXC 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXC 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, FXC currently yields 0.27% against 0.41% for QQQ.
Frequently Asked Questions
Which is cheaper, FXC or QQQ?
FXC 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, FXC or QQQ?
Over the past year FXC returned -0.98% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), FXC annualized -0.94% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, FXC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.7% for FXC. Worst drawdown: FXC -37.9% vs QQQ -83.0%.
Should I hold both FXC and QQQ?
FXC and QQQ have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, FXC or QQQ?
FXC yields 0.27% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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