FXO vs QQQ
First Trust Financials 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 | FXO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $1.1B | $496.3B | |
| Dividend Yield | 1.99% | 0.44% | |
| Holdings | 105 | 108 | |
| YTD Return | +9.69% | +16.64% | |
| 1Y Return | +16.66% | +27.27% | |
| 3Y Return (annualized) | +22.90% | +25.96% | |
| 5Y Return (annualized) | +10.58% | +14.54% | |
| Volatility (annualized) | 21.4% | 30.6% | |
| Max Drawdown | -72.2% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Mar 10, 1999 |
FXO vs QQQ Performance
First Trust Financials AlphaDEX Fund (FXO) 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 FXO returned +16.66% while QQQ returned +27.27%. Year to date, FXO is up 9.69% versus a gain of 16.64% for QQQ.
Over three years, FXO compounded at +22.90% per year against +25.96% for QQQ; over five years the annualized figures are +10.58% and +14.54% respectively. Across the full 19-year window we track, QQQ has the edge at +13.03% annualized vs +7.08%. 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 21.4% for FXO. 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 -72.2% for FXO 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXO 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, FXO currently yields 1.99% against 0.44% for QQQ.
Holdings Overlap
FXO and QQQ share 0 holdings out of 206 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, FXO or QQQ?
FXO 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, FXO or QQQ?
Over the past year FXO returned +16.66% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), FXO annualized +7.08% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, FXO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.4% for FXO. Worst drawdown: FXO -72.2% vs QQQ -83.0%.
Should I hold both FXO and QQQ?
FXO and QQQ have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXO and QQQ?
FXO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 206 unique securities.
Which pays a higher dividend, FXO or QQQ?
FXO yields 1.99% while QQQ yields 0.44%, so FXO currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.