FXH vs QQQ
First Trust Health Care 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 | FXH | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.61% | 0.18% | |
| AUM | $1.1B | $496.3B | |
| Dividend Yield | 0.81% | 0.44% | |
| Holdings | 74 | 108 | |
| YTD Return | +14.81% | +19.52% | |
| 1Y Return | +26.14% | +26.68% | |
| 3Y Return (annualized) | +8.56% | +26.64% | |
| 5Y Return (annualized) | +1.82% | +15.36% | |
| Volatility (annualized) | 16.3% | 30.6% | |
| Max Drawdown | -43.7% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Mar 10, 1999 |
FXH vs QQQ Performance
First Trust Health Care AlphaDEX Fund (FXH) 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 FXH returned +26.14% while QQQ returned +26.68%. Year to date, FXH is up 14.81% versus a gain of 19.52% for QQQ.
Over three years, FXH compounded at +8.56% per year against +26.64% for QQQ; over five years the annualized figures are +1.82% and +15.36% respectively. Across the full 19-year window we track, QQQ has the edge at +13.14% annualized vs +10.38%. 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 16.3% for FXH. 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 -43.7% for FXH 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXH charges 0.61% per year while QQQ charges 0.18%. On a $10,000 position that is $61 vs $18 annually, a gap of $43 per year that compounds over a long holding period. On income, FXH currently yields 0.81% against 0.44% for QQQ.
Holdings Overlap
FXH and QQQ share 6 holdings out of 169 unique holdings combined, representing a 2.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FXH or QQQ?
FXH has an expense ratio of 0.61% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $43 per year of difference.
Which performed better, FXH or QQQ?
Over the past year FXH returned +26.14% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), FXH annualized +10.38% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, FXH or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.3% for FXH. Worst drawdown: FXH -43.7% vs QQQ -83.0%.
Should I hold both FXH and QQQ?
FXH and QQQ have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXH and QQQ?
FXH and QQQ share 6 common holdings with a 2.0% weight overlap. Combined, they hold 169 unique securities.
Which pays a higher dividend, FXH or QQQ?
FXH yields 0.81% while QQQ yields 0.44%, so FXH currently pays the higher dividend yield.
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