FAD vs. QQQJ

Last updated Jun 24, 2026

FAD (First Trust Multi Cap Growth AlphaDEX Fund) and QQQJ (Invesco NASDAQ Next Gen 100 ETF) are both Mid Cap Growth Equities funds - FAD tracks the NASDAQ AlphaDEX Multi Cap Growth Index while QQQJ tracks the NASDAQ Next Generation 100 Index. Both are passively managed. Over the past 5 years, FAD returned 10.64%/yr vs 6.21%/yr for QQQJ. Their correlation of 0.91 suggests significant overlap in exposure. FAD charges 0.63%/yr vs 0.15%/yr for QQQJ.

Performance

FAD vs. QQQJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Multi Cap Growth AlphaDEX Fund (FAD) and Invesco NASDAQ Next Gen 100 ETF (QQQJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with FAD having a 19.17% return and QQQJ slightly higher at 20.04%.

FAD

• 1D: -2.33%
• 1M: 4.88%
• YTD: 19.17%
• 6M: 16.47%
• 1Y: 35.51%
• 3Y*: 24.43%
• 5Y*: 10.64%
• 10Y*: 14.94%

QQQJ

• 1D: -1.14%
• 1M: 2.22%
• YTD: 20.04%
• 6M: 17.68%
• 1Y: 41.94%
• 3Y*: 21.29%
• 5Y*: 6.21%
• 10Y*: —

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

FAD vs. QQQJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
FAD First Trust Multi Cap Growth AlphaDEX Fund	19.17%	17.23%	23.85%	19.07%	-24.06%	21.17%	12.56%
QQQJ Invesco NASDAQ Next Gen 100 ETF	20.04%	20.44%	15.36%	13.68%	-28.25%	9.76%	15.34%

Correlation

The correlation between FAD and QQQJ is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (All Time) Calculated using the full available price history since Oct 13, 2020	0.91

The correlation between FAD and QQQJ has been stable across timeframes, ranging from 0.90 to 0.91 - a consistent structural relationship.

FAD vs. QQQJ - Sectors Allocation Comparison

Sectors	FAD	QQQJ
Technology	27.4%	40.4%
Industrials	25.0%	11.1%
Healthcare	14.8%	18.7%
Consumer Cyclical	10.1%	11.3%
Financial Services	7.8%	2.0%
Real Estate	3.9%	-
Communication Services	3.1%	7.8%
Basic Materials	2.9%	2.6%
Consumer Defensive	2.2%	2.6%
Utilities	1.5%	2.6%
Energy	1.3%	1.0%

Return for Risk

FAD vs. QQQJ — Risk / Return Rank

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

FAD

FAD Risk / Return Rank: 62
FAD Sharpe Ratio Rank: 58
FAD Sortino Ratio Rank: 56
FAD Omega Ratio Rank: 54
FAD Calmar Ratio Rank: 71
FAD Martin Ratio Rank: 73

QQQJ

QQQJ Risk / Return Rank: 72
QQQJ Sharpe Ratio Rank: 72
QQQJ Sortino Ratio Rank: 68
QQQJ Omega Ratio Rank: 67
QQQJ Calmar Ratio Rank: 73
QQQJ Martin Ratio Rank: 79

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.

FAD vs. QQQJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Multi Cap Growth AlphaDEX Fund (FAD) and Invesco NASDAQ Next Gen 100 ETF (QQQJ). 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.

	FAD	QQQJ	Difference
Sharpe ratio: Return per unit of total volatility	1.82	2.22	-0.40
Sortino ratio: Return per unit of downside risk	2.49	2.97	-0.48
Omega ratio: Gain probability vs. loss probability	1.31	1.38	-0.07
Calmar ratio: Return relative to maximum drawdown	3.35	3.56	-0.21
Martin ratio: Return relative to average drawdown	12.74	14.75	-2.01

FAD vs. QQQJ - Sharpe Ratio Comparison

The current FAD Sharpe Ratio is 1.82, which is comparable to the QQQJ Sharpe Ratio of 2.22. The chart below compares the historical Sharpe Ratios of FAD and QQQJ, 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

FAD vs. QQQJ - Drawdown Comparison

The maximum FAD drawdown since its inception was -54.33%, which is greater than QQQJ's maximum drawdown of -39.57%. Use the drawdown chart below to compare losses from any high point for FAD and QQQJ.

Drawdown Indicators

	FAD	QQQJ	Difference
Max Drawdown Largest peak-to-trough decline	-54.33%	-39.57%	-14.76%
Max Drawdown (1Y) Largest decline over 1 year	-10.66%	-11.84%	+1.18%
Max Drawdown (3Y) Largest decline over 3 years	-23.55%	-22.46%	-1.09%
Max Drawdown (5Y) Largest decline over 5 years	-31.99%	-39.57%	+7.58%
Max Drawdown (10Y) Largest decline over 10 years	-37.25%	—	—
Current Drawdown Current decline from peak	-2.33%	-3.24%	+0.91%
Average Drawdown Average peak-to-trough decline	-9.62%	-15.62%	+6.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.80%	2.85%	-0.05%

Volatility

FAD vs. QQQJ - Volatility Comparison

First Trust Multi Cap Growth AlphaDEX Fund (FAD) has a higher volatility of 7.85% compared to Invesco NASDAQ Next Gen 100 ETF (QQQJ) at 7.18%. This indicates that FAD's price experiences larger fluctuations and is considered to be riskier than QQQJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAD	QQQJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.85%	7.18%	+0.67%
Volatility (6M) Calculated over the trailing 6-month period	15.44%	15.70%	-0.26%
Volatility (1Y) Calculated over the trailing 1-year period	19.65%	19.00%	+0.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.75%	22.18%	-1.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.29%	22.11%	-0.82%

FAD vs. QQQJ - Expense Ratio Comparison

FAD has a 0.63% expense ratio, which is higher than QQQJ's 0.15% expense ratio.

Dividends

FAD vs. QQQJ - Dividend Comparison

FAD's dividend yield for the trailing twelve months is around 0.09%, less than QQQJ's 0.55% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FAD First Trust Multi Cap Growth AlphaDEX Fund	0.09%	0.09%	0.59%	0.51%	0.60%	0.09%	0.32%	0.48%	0.20%	0.22%	0.64%	0.41%
QQQJ Invesco NASDAQ Next Gen 100 ETF	0.55%	0.85%	0.77%	0.67%	0.76%	0.91%	0.09%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FAD and QQQJ in my portfolio?

FAD and QQQJ have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FAD or QQQJ?

FAD has higher volatility (7.85%) compared to QQQJ (7.18%). In terms of maximum drawdown, FAD dropped -54.33% vs QQQJ's -39.57%.

Which ETF is better, FAD or QQQJ?

On 5-year performance, FAD leads with 10.64% vs 6.21% for QQQJ. On fees, QQQJ is cheaper at 0.15% per year. On volatility, QQQJ has been the lower-risk option at 7.18%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FAD or QQQJ?

Over the 5-year period, FAD has performed better with a 10.64% return vs 6.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FAD or QQQJ?

QQQJ is cheaper with a 0.15% expense ratio, compared with 0.63% for FAD.

Which ETF pays a higher dividend yield, FAD or QQQJ?

QQQJ has the higher dividend yield at 0.55%, compared with 0.09% for FAD.

What is the main difference between FAD and QQQJ?

FAD tracks NASDAQ AlphaDEX Multi Cap Growth Index, while QQQJ tracks NASDAQ Next Generation 100 Index. They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.63% for FAD and 0.15% for QQQJ.

Which has better risk-adjusted returns?

QQQJ currently has the higher Sharpe Ratio (2.22 vs 1.82), 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.