FXL vs QQQ
First Trust Technology AlphaDEX Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FXL delivered stronger 1-year returns. FXL offers more diversification with 111 holdings.
Side-by-Side Comparison
| Metric | FXL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $2.9B | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 111 | 108 | |
| YTD Return | +32.38% | +19.52% | |
| 1Y Return | +40.13% | +26.68% | |
| 3Y Return (annualized) | +26.26% | +26.64% | |
| 5Y Return (annualized) | +12.54% | +15.36% | |
| Volatility (annualized) | 22.1% | 30.6% | |
| Max Drawdown | -61.4% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Mar 10, 1999 |
FXL vs QQQ Performance
First Trust Technology AlphaDEX Fund (FXL) 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 FXL returned +40.13% while QQQ returned +26.68%. Year to date, FXL is up 32.38% versus a gain of 19.52% for QQQ.
Over three years, FXL compounded at +26.26% per year against +26.64% for QQQ; over five years the annualized figures are +12.54% and +15.36% respectively. Across the full 19-year window we track, FXL has the edge at +13.65% annualized vs +13.14%. 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 22.1% for FXL. 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 -61.4% for FXL 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FXL charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, FXL currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
FXL and QQQ share 32 holdings out of 180 unique holdings combined, representing a 20.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FXL or QQQ?
FXL has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, FXL or QQQ?
Over the past year FXL returned +40.13% vs +26.68% for QQQ, so FXL leads on 1-year performance. Over the longest common window we track (19 years), FXL annualized +13.65% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, FXL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 22.1% for FXL. Worst drawdown: FXL -61.4% vs QQQ -83.0%.
Should I hold both FXL and QQQ?
FXL and QQQ have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FXL and QQQ?
FXL and QQQ share 32 common holdings with a 20.4% weight overlap. Combined, they hold 180 unique securities.
Which pays a higher dividend, FXL or QQQ?
FXL yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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