FXN vs QQQ
First Trust Energy AlphaDEX Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FXN delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | FXN | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.63% | 0.18% | |
| AUM | $387M | $496.3B | |
| Dividend Yield | 1.62% | 0.44% | |
| Holdings | 40 | 108 | |
| YTD Return | +40.89% | +16.23% | |
| 1Y Return | +55.21% | +26.23% | |
| 3Y Return (annualized) | +12.92% | +25.75% | |
| 5Y Return (annualized) | +22.59% | +14.78% | |
| Volatility (annualized) | 34.8% | 30.6% | |
| Max Drawdown | -88.6% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Mar 10, 1999 |
FXN vs QQQ Performance
First Trust Energy AlphaDEX Fund (FXN) 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 FXN returned +55.21% while QQQ returned +26.23%. Year to date, FXN is up 40.89% versus a gain of 16.23% for QQQ.
Over three years, FXN compounded at +12.92% per year against +25.75% for QQQ; over five years the annualized figures are +22.59% and +14.78% respectively. Across the full 19-year window we track, QQQ has the edge at +13.02% annualized vs +1.56%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FXN has been the more volatile fund, with annualized monthly volatility of 34.8% compared with 30.6% for QQQ. 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 -88.6% for FXN 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXN 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, FXN currently yields 1.62% against 0.44% for QQQ.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, FXN or QQQ?
FXN 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, FXN or QQQ?
Over the past year FXN returned +55.21% vs +26.23% for QQQ, so FXN leads on 1-year performance. Over the longest common window we track (19 years), FXN annualized +1.56% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FXN or QQQ?
FXN has been the more volatile fund at 34.8% annualized versus 30.6% for QQQ. Worst drawdown: FXN -88.6% vs QQQ -83.0%.
Should I hold both FXN and QQQ?
FXN and QQQ have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXN and QQQ?
FXN and QQQ share 2 common holdings with a 0.5% weight overlap. Combined, they hold 139 unique securities.
Which pays a higher dividend, FXN or QQQ?
FXN yields 1.62% while QQQ yields 0.44%, so FXN currently pays the higher dividend yield.
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