FXP vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricFXPQQQWinner
Expense Ratio0.95%0.18%
AUM$6M$496.3B
Dividend Yield3.41%0.44%
Holdings6108
YTD Return+26.05%+19.52%
1Y Return+13.60%+26.68%
3Y Return (annualized)-29.02%+26.64%
5Y Return (annualized)-19.82%+15.36%
Volatility (annualized)48.3%30.6%
Max Drawdown-99.9%-83.0%
Fund FamilyProSharesInvesco (US)
CategoryAlternativeEquity
InceptionNov 6, 2007Mar 10, 1999

FXP vs QQQ Performance

ProShares Ultrashort FTSE China 50 (FXP) is a ETF from ProShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FXP returned +13.60% while QQQ returned +26.68%. Year to date, FXP is up 26.05% versus a gain of 19.52% for QQQ.

Over three years, FXP compounded at -29.02% per year against +26.64% for QQQ; over five years the annualized figures are -19.82% and +15.36% respectively. Across the full 19-year window we track, QQQ has the edge at +13.14% annualized vs -28.38%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FXP has been the more volatile fund, with annualized monthly volatility of 48.3% 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 -99.9% for FXP 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 -0.34. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FXP charges 0.95% per year while QQQ charges 0.18%. On a $10,000 position that is $95 vs $18 annually, a gap of $77 per year that compounds over a long holding period. On income, FXP currently yields 3.41% against 0.44% for QQQ.

Frequently Asked Questions

Which is cheaper, FXP or QQQ?

FXP has an expense ratio of 0.95% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $77 per year of difference.

Which performed better, FXP or QQQ?

Over the past year FXP returned +13.60% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), FXP annualized -28.38% vs +13.14% for QQQ. Past performance does not guarantee future results.

Which is riskier, FXP or QQQ?

FXP has been the more volatile fund at 48.3% annualized versus 30.6% for QQQ. Worst drawdown: FXP -99.9% vs QQQ -83.0%.

Should I hold both FXP and QQQ?

FXP and QQQ have a monthly-return correlation of -0.34, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, FXP or QQQ?

FXP yields 3.41% while QQQ yields 0.44%, so FXP currently pays the higher dividend yield.

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