FXED vs QQQ
Sound Enhanced Fixed Income ETF 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 | FXED | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.89% | 0.18% | |
| AUM | $40M | $455.8B | |
| Dividend Yield | 4.31% | 0.41% | |
| Holdings | 60 | 108 | |
| YTD Return | -0.21% | +18.31% | |
| 1Y Return | +0.79% | +25.37% | |
| 3Y Return (annualized) | +6.04% | +25.79% | |
| 5Y Return (annualized) | +2.23% | +15.20% | |
| Volatility (annualized) | 9.7% | 30.6% | |
| Max Drawdown | -19.7% | -83.0% | |
| Fund Family | Sound Income Strategies | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 30, 2020 | Mar 10, 1999 |
FXED vs QQQ Performance
Sound Enhanced Fixed Income ETF (FXED) is a ETF from Sound Income Strategies and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FXED returned +0.79% while QQQ returned +25.37%. Year to date, FXED is down 0.21% versus a gain of 18.31% for QQQ.
Over three years, FXED compounded at +6.04% per year against +25.79% for QQQ; over five years the annualized figures are +2.23% and +15.20% respectively. Across the full 6-year window we track, QQQ has the edge at +13.10% annualized vs +3.25%. 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 9.7% for FXED. 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 -19.7% for FXED 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FXED charges 1.89% per year while QQQ charges 0.18%. On a $10,000 position that is $189 vs $18 annually, a gap of $171 per year that compounds over a long holding period. On income, FXED currently yields 4.31% against 0.41% for QQQ.
Holdings Overlap
FXED and QQQ share 0 holdings out of 160 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, FXED or QQQ?
FXED has an expense ratio of 1.89% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $171 per year of difference.
Which performed better, FXED or QQQ?
Over the past year FXED returned +0.79% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), FXED annualized +3.25% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, FXED or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 9.7% for FXED. Worst drawdown: FXED -19.7% vs QQQ -83.0%.
Should I hold both FXED and QQQ?
FXED and QQQ have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXED and QQQ?
FXED and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 160 unique securities.
Which pays a higher dividend, FXED or QQQ?
FXED yields 4.31% while QQQ yields 0.41%, so FXED currently pays the higher dividend yield.
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