FXL vs. QQQ
Compare and contrast key facts about First Trust Technology AlphaDEX Fund (FXL) and Invesco QQQ (QQQ).
FXL and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FXL is a passively managed fund by First Trust that tracks the performance of the StrataQuant Technology Index. It was launched on May 8, 2007. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both FXL and QQQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FXL or QQQ.
Key characteristics
| FXL | QQQ | |
|---|---|---|
| YTD Return | 17.98% | 25.94% |
| 1Y Return | 36.06% | 38.64% |
| 3Y Return (Ann) | 3.45% | 9.61% |
| 5Y Return (Ann) | 17.48% | 21.45% |
| 10Y Return (Ann) | 16.83% | 18.54% |
| Sharpe Ratio | 1.75 | 2.22 |
| Sortino Ratio | 2.36 | 2.91 |
| Omega Ratio | 1.30 | 1.40 |
| Calmar Ratio | 1.79 | 2.86 |
| Martin Ratio | 8.07 | 10.42 |
| Ulcer Index | 4.44% | 3.72% |
| Daily Std Dev | 20.44% | 17.47% |
| Max Drawdown | -61.41% | -82.98% |
| Current Drawdown | 0.00% | 0.00% |
Correlation
The correlation between FXL and QQQ is 0.86, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
FXL vs. QQQ - Performance Comparison
In the year-to-date period, FXL achieves a 17.98% return, which is significantly lower than QQQ's 25.94% return. Over the past 10 years, FXL has underperformed QQQ with an annualized return of 16.83%, while QQQ has yielded a comparatively higher 18.54% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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FXL vs. QQQ - Expense Ratio Comparison
FXL has a 0.61% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
FXL vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Technology AlphaDEX Fund (FXL) and Invesco QQQ (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.
Dividends
FXL vs. QQQ - Dividend Comparison
FXL's dividend yield for the trailing twelve months is around 0.34%, less than QQQ's 0.59% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXL First Trust Technology AlphaDEX Fund | 0.34% | 0.41% | 0.34% | 0.11% | 0.04% | 0.37% | 0.32% | 0.27% | 1.13% | 0.36% | 0.63% | 0.32% |
QQQ Invesco QQQ | 0.59% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.02% |
Drawdowns
FXL vs. QQQ - Drawdown Comparison
The maximum FXL drawdown since its inception was -61.41%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for FXL and QQQ. For additional features, visit the drawdowns tool.
Volatility
FXL vs. QQQ - Volatility Comparison
First Trust Technology AlphaDEX Fund (FXL) has a higher volatility of 5.97% compared to Invesco QQQ (QQQ) at 5.18%. This indicates that FXL's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.