ALZFX vs. QQQ

Last updated Jun 25, 2026

ALZFX (Alger Focus Equity Fund Class Z) and QQQ (Invesco QQQ ETF) are both funds - ALZFX is a Large Cap Growth Equities fund actively managed by Alger, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. ALZFX is actively managed, while QQQ is passively managed. Over the past 10 years, ALZFX returned 22.33%/yr vs 22.01%/yr for QQQ. Their correlation of 0.94 suggests significant overlap in exposure. ALZFX charges 0.63%/yr vs 0.18%/yr for QQQ.

Performance

ALZFX vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alger Focus Equity Fund Class Z (ALZFX) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ALZFX achieves a 13.33% return, which is significantly lower than QQQ's 15.95% return. Both investments have delivered pretty close results over the past 10 years, with ALZFX having a 22.33% annualized return and QQQ not far behind at 22.01%.

ALZFX

• 1D: -2.30%
• 1M: 0.83%
• YTD: 13.33%
• 6M: 10.89%
• 1Y: 39.68%
• 3Y*: 39.56%
• 5Y*: 18.91%
• 10Y*: 22.33%

QQQ

• 1D: -0.42%
• 1M: -0.86%
• YTD: 15.95%
• 6M: 14.16%
• 1Y: 32.28%
• 3Y*: 25.87%
• 5Y*: 15.94%
• 10Y*: 22.01%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ALZFX vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ALZFX Alger Focus Equity Fund Class Z	13.33%	40.08%	52.22%	44.63%	-35.75%	20.37%	46.19%	34.29%	1.68%	29.12%
QQQ Invesco QQQ ETF	15.95%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between ALZFX and QQQ is 0.86, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Jan 2, 2013	0.94

The correlation between ALZFX and QQQ has been stable across timeframes, ranging from 0.86 to 0.94 - a consistent structural relationship.

Return for Risk

ALZFX vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ALZFX

ALZFX Risk / Return Rank: 45
ALZFX Sharpe Ratio Rank: 51
ALZFX Sortino Ratio Rank: 43
ALZFX Omega Ratio Rank: 41
ALZFX Calmar Ratio Rank: 47
ALZFX Martin Ratio Rank: 41

QQQ

QQQ Risk / Return Rank: 59
QQQ Sharpe Ratio Rank: 60
QQQ Sortino Ratio Rank: 56
QQQ Omega Ratio Rank: 58
QQQ Calmar Ratio Rank: 61
QQQ Martin Ratio Rank: 61

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ALZFX vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alger Focus Equity Fund Class Z (ALZFX) and Invesco QQQ ETF (QQQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ALZFX	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.86	1.81	+0.05
Sortino ratio: Return per unit of downside risk	2.45	2.41	+0.04
Omega ratio: Gain probability vs. loss probability	1.31	1.32	-0.01
Calmar ratio: Return relative to maximum drawdown	2.45	2.71	-0.26
Martin ratio: Return relative to average drawdown	8.15	10.01	-1.86

ALZFX vs. QQQ - Sharpe Ratio Comparison

The current ALZFX Sharpe Ratio is 1.86, which is comparable to the QQQ Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of ALZFX and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ALZFX vs. QQQ - Drawdown Comparison

The maximum ALZFX drawdown since its inception was -43.22%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for ALZFX and QQQ.

Drawdown Indicators

	ALZFX	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-43.22%	-82.97%	+39.75%
Max Drawdown (1Y) Largest decline over 1 year	-17.45%	-11.96%	-5.49%
Max Drawdown (3Y) Largest decline over 3 years	-26.93%	-22.77%	-4.16%
Max Drawdown (5Y) Largest decline over 5 years	-43.22%	-35.12%	-8.10%
Max Drawdown (10Y) Largest decline over 10 years	-43.22%	-35.12%	-8.10%
Current Drawdown Current decline from peak	-4.24%	-4.66%	+0.42%
Average Drawdown Average peak-to-trough decline	-7.52%	-32.72%	+25.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.23%	3.23%	+2.00%

Volatility

ALZFX vs. QQQ - Volatility Comparison

Alger Focus Equity Fund Class Z (ALZFX) and Invesco QQQ ETF (QQQ) have volatilities of 9.42% and 9.17%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ALZFX	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.42%	9.17%	+0.25%
Volatility (6M) Calculated over the trailing 6-month period	17.67%	14.54%	+3.13%
Volatility (1Y) Calculated over the trailing 1-year period	22.94%	17.95%	+4.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.37%	22.69%	+3.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.06%	22.41%	+1.65%

ALZFX vs. QQQ - Expense Ratio Comparison

ALZFX has a 0.63% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

ALZFX vs. QQQ - Dividend Comparison

ALZFX's dividend yield for the trailing twelve months is around 6.65%, more than QQQ's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ALZFX Alger Focus Equity Fund Class Z	6.65%	7.53%	0.00%	0.12%	0.10%	13.63%	6.16%	2.21%	5.55%	0.00%	0.00%	0.00%
QQQ Invesco QQQ ETF	0.43%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both ALZFX and QQQ in my portfolio?

ALZFX and QQQ have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ALZFX or QQQ?

ALZFX has higher volatility (9.42%) compared to QQQ (9.17%). In terms of maximum drawdown, ALZFX dropped -43.22% vs QQQ's -82.97%.

Which has better risk-adjusted returns?

ALZFX currently has the higher Sharpe Ratio (1.86 vs 1.81), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.