FYT vs QQQ
First Trust Small Cap Value AlphaDEX Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FYT delivered stronger 1-year returns. FYT offers more diversification with 263 holdings.
Side-by-Side Comparison
| Metric | FYT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.18% | |
| AUM | $202M | $496.3B | |
| Dividend Yield | 1.43% | 0.44% | |
| Holdings | 263 | 108 | |
| YTD Return | +27.20% | +16.23% | |
| 1Y Return | +35.67% | +26.23% | |
| 3Y Return (annualized) | +16.04% | +25.75% | |
| 5Y Return (annualized) | +9.26% | +14.78% | |
| Volatility (annualized) | 22.4% | 30.6% | |
| Max Drawdown | -51.7% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 19, 2011 | Mar 10, 1999 |
FYT vs QQQ Performance
First Trust Small Cap Value AlphaDEX Fund (FYT) 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 FYT returned +35.67% while QQQ returned +26.23%. Year to date, FYT is up 27.20% versus a gain of 16.23% for QQQ.
Over three years, FYT compounded at +16.04% per year against +25.75% for QQQ; over five years the annualized figures are +9.26% and +14.78% respectively. Across the full 15-year window we track, QQQ has the edge at +13.02% annualized vs +9.21%. 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 22.4% for FYT. 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 -51.7% for FYT 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FYT 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, FYT currently yields 1.43% against 0.44% for QQQ.
Holdings Overlap
FYT and QQQ share 0 holdings out of 362 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, FYT or QQQ?
FYT 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, FYT or QQQ?
Over the past year FYT returned +35.67% vs +26.23% for QQQ, so FYT leads on 1-year performance. Over the longest common window we track (15 years), FYT annualized +9.21% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FYT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 22.4% for FYT. Worst drawdown: FYT -51.7% vs QQQ -83.0%.
Should I hold both FYT and QQQ?
FYT and QQQ have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FYT and QQQ?
FYT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 362 unique securities.
Which pays a higher dividend, FYT or QQQ?
FYT yields 1.43% while QQQ yields 0.44%, so FYT currently pays the higher dividend yield.
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