FXG vs QQQ
First Trust Consumer Staples AlphaDEX Fund 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 108 holdings.
Side-by-Side Comparison
| Metric | FXG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.63% | 0.18% | |
| AUM | $232M | $496.3B | |
| Dividend Yield | 2.37% | 0.44% | |
| Holdings | 41 | 108 | |
| YTD Return | +9.42% | +16.23% | |
| 1Y Return | +3.54% | +26.23% | |
| 3Y Return (annualized) | +3.73% | +25.75% | |
| 5Y Return (annualized) | +4.78% | +14.78% | |
| Volatility (annualized) | 14.7% | 30.6% | |
| Max Drawdown | -40.0% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Mar 10, 1999 |
FXG vs QQQ Performance
First Trust Consumer Staples AlphaDEX Fund (FXG) 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 FXG returned +3.54% while QQQ returned +26.23%. Year to date, FXG is up 9.42% versus a gain of 16.23% for QQQ.
Over three years, FXG compounded at +3.73% per year against +25.75% for QQQ; over five years the annualized figures are +4.78% and +14.78% respectively. Across the full 19-year window we track, QQQ has the edge at +13.02% annualized vs +7.01%. 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 14.7% for FXG. 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 -40.0% for FXG 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXG charges 0.63% per year while QQQ charges 0.18%. On a $10,000 position that is $63 vs $18 annually, a gap of $45 per year that compounds over a long holding period. On income, FXG currently yields 2.37% against 0.44% for QQQ.
Holdings Overlap
FXG and QQQ share 4 holdings out of 138 unique holdings combined, representing a 1.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FXG or QQQ?
FXG has an expense ratio of 0.63% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, FXG or QQQ?
Over the past year FXG returned +3.54% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), FXG annualized +7.01% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FXG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.7% for FXG. Worst drawdown: FXG -40.0% vs QQQ -83.0%.
Should I hold both FXG and QQQ?
FXG and QQQ have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXG and QQQ?
FXG and QQQ share 4 common holdings with a 1.8% weight overlap. Combined, they hold 138 unique securities.
Which pays a higher dividend, FXG or QQQ?
FXG yields 2.37% while QQQ yields 0.44%, so FXG currently pays the higher dividend yield.
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