FXED vs QQQ
Sound Enhanced Fixed Income ETF vs Invesco QQQ Trust, Series 1
Which is better, FXED or QQQ?
Diversified Sectoral Bond against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FXED is less concentrated, with 27.3% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FXED | QQQ |
|---|---|---|
| Expense Ratio | 1.89% | 0.18%Best |
| AUM | $39M | $486.1B |
| Dividend Yield | 7.42% | 0.44% |
| Holdings | 67 | 107 |
| YTD Return | -0.50% | +17.54%Best |
| 1Y Return | -1.14% | +25.59%Best |
| 3Y Return (annualized) | +5.90% | +24.63%Best |
| 5Y Return (annualized) | +2.08% | +14.18%Best |
| Volatility (annualized) | 9.6%Best | 19.9% |
| Max Drawdown | -19.7%Best | -35.1% |
| $10,000 over 5 years | $11,084 | $19,407Best |
| Top 10 Weight | 27.3%Best | 46.5% |
| Fund Family | Sound Income Strategies | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | Diversified Sectoral Bond | Large Cap Growth |
| Inception | Dec 30, 2020 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Dec 31, 2020 to Sep 4, 2026 (5.7 years).
FXED vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.7 years both funds cover.
FXED vs QQQ Performance
Sound Enhanced Fixed Income ETF (FXED) is an ETF from Sound Income Strategies and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FXED returned -1.14% while QQQ returned +25.59%. Year to date, FXED is down 0.50% versus a gain of 17.54% for QQQ.
Over three years, FXED compounded at +5.90% per year against +24.63% for QQQ; over five years the annualized figures are +2.08% and +14.18% respectively. Across the full 6-year window we track, QQQ has the edge at +16.39% annualized vs +3.16%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.9% compared with 9.6% 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 -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 7.42% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 64 holdings in FXED and 102 in QQQ, totalling 97.2% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 64 positions we hold weights for in FXED and 102 in QQQ, against full books of 67 and 107.
What only one of them owns
Measured across the 64 and 102 positions we hold weights for.
QQQ holds 96 positions FXED does not, 97.5% of the fund.
Largest: NVDA 8.44%, AAPL 7.27%, MSFT 5.76%, AMZN 4.67%, MU 4.43%
You are not choosing between two funds in isolation.
Whichever of FXED and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $171 a year on a $10,000 investment.
Which performed better, FXED or QQQ?
Over the past year FXED returned -1.14% vs +25.59% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), FXED annualized +3.16% vs +16.39% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FXED or QQQ?
QQQ has been the more volatile fund at 19.9% annualized versus 9.6% for FXED. Worst drawdown: FXED -19.7% vs QQQ -35.1%.
Should I hold both FXED and QQQ?
FXED and QQQ have a monthly-return correlation of 0.71, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FXED or QQQ?
FXED yields 7.42% while QQQ yields 0.44%, so FXED currently pays the higher dividend yield.
Is QQQ better than FXED?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FXED is less concentrated, with 27.3% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.