FXD vs QQQ
First Trust Consumer Discretionary AlphaDEX Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FXD offers more diversification with 113 holdings.
Side-by-Side Comparison
| Metric | FXD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $273M | $496.3B | |
| Dividend Yield | 0.60% | 0.44% | |
| Holdings | 113 | 108 | |
| YTD Return | +1.96% | +17.07% | |
| 1Y Return | +4.58% | +26.39% | |
| 3Y Return (annualized) | +10.23% | +26.08% | |
| 5Y Return (annualized) | +4.01% | +15.18% | |
| Volatility (annualized) | 22.4% | 30.6% | |
| Max Drawdown | -65.7% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Mar 10, 1999 |
FXD vs QQQ Performance
First Trust Consumer Discretionary AlphaDEX Fund (FXD) 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 FXD returned +4.58% while QQQ returned +26.39%. Year to date, FXD is up 1.96% versus a gain of 17.07% for QQQ.
Over three years, FXD compounded at +10.23% per year against +26.08% for QQQ; over five years the annualized figures are +4.01% and +15.18% respectively. Across the full 19-year window we track, QQQ has the edge at +13.05% annualized vs +6.96%. 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 22.4% for FXD. 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 -65.7% for FXD 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FXD charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, FXD currently yields 0.60% against 0.44% for QQQ.
Holdings Overlap
FXD and QQQ share 9 holdings out of 205 unique holdings combined, representing a 3.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FXD or QQQ?
FXD has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, FXD or QQQ?
Over the past year FXD returned +4.58% vs +26.39% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), FXD annualized +6.96% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, FXD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 22.4% for FXD. Worst drawdown: FXD -65.7% vs QQQ -83.0%.
Should I hold both FXD and QQQ?
FXD and QQQ have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXD and QQQ?
FXD and QQQ share 9 common holdings with a 3.1% weight overlap. Combined, they hold 205 unique securities.
Which pays a higher dividend, FXD or QQQ?
FXD yields 0.60% while QQQ yields 0.44%, so FXD currently pays the higher dividend yield.
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