FXI vs QQQ
iShares China Large-Cap 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 108 holdings.
Side-by-Side Comparison
| Metric | FXI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.18% | |
| AUM | $4.2B | $496.3B | |
| Dividend Yield | 1.85% | 0.44% | |
| Holdings | 59 | 108 | |
| YTD Return | -9.75% | +16.23% | |
| 1Y Return | -5.47% | +26.23% | |
| 3Y Return (annualized) | +13.75% | +25.75% | |
| 5Y Return (annualized) | +0.85% | +14.78% | |
| Volatility (annualized) | 26.3% | 30.6% | |
| Max Drawdown | -73.3% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 5, 2004 | Mar 10, 1999 |
FXI vs QQQ Performance
iShares China Large-Cap ETF (FXI) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FXI returned -5.47% while QQQ returned +26.23%. Year to date, FXI is down 9.75% versus a gain of 16.23% for QQQ.
Over three years, FXI compounded at +13.75% per year against +25.75% for QQQ; over five years the annualized figures are +0.85% and +14.78% respectively. Across the full 22-year window we track, QQQ has the edge at +13.02% annualized vs +3.81%. 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 26.3% for FXI. 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 -73.3% for FXI 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXI charges 0.73% per year while QQQ charges 0.18%. On a $10,000 position that is $73 vs $18 annually, a gap of $55 per year that compounds over a long holding period. On income, FXI currently yields 1.85% against 0.44% for QQQ.
Holdings Overlap
FXI and QQQ share 0 holdings out of 153 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, FXI or QQQ?
FXI has an expense ratio of 0.73% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $55 per year of difference.
Which performed better, FXI or QQQ?
Over the past year FXI returned -5.47% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (22 years), FXI annualized +3.81% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FXI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 26.3% for FXI. Worst drawdown: FXI -73.3% vs QQQ -83.0%.
Should I hold both FXI and QQQ?
FXI and QQQ have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXI and QQQ?
FXI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 153 unique securities.
Which pays a higher dividend, FXI or QQQ?
FXI yields 1.85% while QQQ yields 0.44%, so FXI currently pays the higher dividend yield.
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