FXE vs QQQ
Invesco CurrencyShares Euro Currency 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 | FXE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.18% | |
| AUM | $336M | $455.8B | |
| Dividend Yield | 0.74% | 0.41% | |
| Holdings | 2 | 108 | |
| YTD Return | -1.25% | +18.31% | |
| 1Y Return | -0.63% | +25.37% | |
| 3Y Return (annualized) | +3.34% | +25.79% | |
| 5Y Return (annualized) | +0.44% | +15.20% | |
| Volatility (annualized) | 9.1% | 30.6% | |
| Max Drawdown | -44.7% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 9, 2005 | Mar 10, 1999 |
FXE vs QQQ Performance
Invesco CurrencyShares Euro Currency Trust (FXE) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FXE returned -0.63% while QQQ returned +25.37%. Year to date, FXE is down 1.25% versus a gain of 18.31% for QQQ.
Over three years, FXE compounded at +3.34% per year against +25.79% for QQQ; over five years the annualized figures are +0.44% and +15.20% respectively. Across the full 21-year window we track, QQQ has the edge at +13.10% annualized vs -0.32%. 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 9.1% for FXE. 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 -44.7% for FXE 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXE 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, FXE currently yields 0.74% against 0.41% for QQQ.
Frequently Asked Questions
Which is cheaper, FXE or QQQ?
FXE 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, FXE or QQQ?
Over the past year FXE returned -0.63% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), FXE annualized -0.32% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, FXE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 9.1% for FXE. Worst drawdown: FXE -44.7% vs QQQ -83.0%.
Should I hold both FXE and QQQ?
FXE and QQQ have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, FXE or QQQ?
FXE yields 0.74% while QQQ yields 0.41%, so FXE currently pays the higher dividend yield.
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