FYC vs QQQ
First Trust Small Cap Growth AlphaDEX Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FYC delivered stronger 1-year returns. FYC offers more diversification with 263 holdings.
Side-by-Side Comparison
| Metric | FYC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.18% | |
| AUM | $1.4B | $496.3B | |
| Dividend Yield | 0.17% | 0.44% | |
| Holdings | 263 | 108 | |
| YTD Return | +28.41% | +19.52% | |
| 1Y Return | +48.87% | +26.68% | |
| 3Y Return (annualized) | +28.09% | +26.64% | |
| 5Y Return (annualized) | +12.42% | +15.36% | |
| Volatility (annualized) | 20.1% | 30.6% | |
| Max Drawdown | -48.1% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 19, 2011 | Mar 10, 1999 |
FYC vs QQQ Performance
First Trust Small Cap Growth AlphaDEX Fund (FYC) 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 FYC returned +48.87% while QQQ returned +26.68%. Year to date, FYC is up 28.41% versus a gain of 19.52% for QQQ.
Over three years, FYC compounded at +28.09% per year against +26.64% for QQQ; over five years the annualized figures are +12.42% and +15.36% respectively. Across the full 15-year window we track, QQQ has the edge at +13.14% annualized vs +12.67%. 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 20.1% for FYC. 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 -48.1% for FYC 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FYC charges 0.70% per year while QQQ charges 0.18%. On a $10,000 position that is $70 vs $18 annually, a gap of $52 per year that compounds over a long holding period. On income, FYC currently yields 0.17% against 0.44% for QQQ.
Holdings Overlap
FYC and QQQ share 0 holdings out of 364 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, FYC or QQQ?
FYC has an expense ratio of 0.70% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, FYC or QQQ?
Over the past year FYC returned +48.87% vs +26.68% for QQQ, so FYC leads on 1-year performance. Over the longest common window we track (15 years), FYC annualized +12.67% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, FYC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.1% for FYC. Worst drawdown: FYC -48.1% vs QQQ -83.0%.
Should I hold both FYC and QQQ?
FYC and QQQ have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FYC and QQQ?
FYC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 364 unique securities.
Which pays a higher dividend, FYC or QQQ?
FYC yields 0.17% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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