FXZ vs. QQQ

Last updated Jun 4, 2026

FXZ (First Trust Materials AlphaDEX Fund) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - FXZ is a Materials fund tracking the StrataQuant Materials Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, FXZ returned 11.67%/yr vs 21.94%/yr for QQQ. A 0.60 correlation means they provide meaningful diversification when combined. FXZ charges 0.67%/yr vs 0.18%/yr for QQQ.

Performance

FXZ vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Materials AlphaDEX Fund (FXZ) 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, FXZ achieves a 29.62% return, which is significantly higher than QQQ's 21.30% return. Over the past 10 years, FXZ has underperformed QQQ with an annualized return of 11.67%, while QQQ has yielded a comparatively higher 21.94% annualized return.

FXZ

• 1D: -0.40%
• 1M: 5.70%
• YTD: 29.62%
• 6M: 33.34%
• 1Y: 53.31%
• 3Y*: 13.07%
• 5Y*: 7.84%
• 10Y*: 11.67%

QQQ

• 1D: -0.26%
• 1M: 10.60%
• YTD: 21.30%
• 6M: 19.66%
• 1Y: 41.82%
• 3Y*: 28.78%
• 5Y*: 17.97%
• 10Y*: 21.94%

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

FXZ vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXZ First Trust Materials AlphaDEX Fund	29.62%	16.25%	-16.31%	16.27%	-0.92%	30.84%	22.52%	21.52%	-22.62%	23.72%
QQQ Invesco QQQ ETF	21.30%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between FXZ and QQQ is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.50
Correlation (10Y) Calculated over the trailing 10-year period	0.52
Correlation (All Time) Calculated using the full available price history since May 11, 2007	0.60

The correlation between FXZ and QQQ shifts across timeframes, from 0.46 (3 years) to 0.60 (all time), reflecting how their relationship changes across market environments.

FXZ vs. QQQ - Sectors Allocation Comparison

Sectors	FXZ	QQQ
Basic Materials	75.7%	1.1%
Industrials	20.4%	2.8%
Consumer Cyclical	3.9%	12.3%
Communication Services	-	15.8%
Consumer Defensive	-	7.7%
Energy	-	0.6%
Financial Services	-	0.2%
Healthcare	-	4.2%
Real Estate	-	0.1%
Technology	-	53.8%
Utilities	-	1.4%

Return for Risk

FXZ vs. QQQ — Risk / Return Rank

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

FXZ

FXZ Risk / Return Rank: 74
FXZ Sharpe Ratio Rank: 75
FXZ Sortino Ratio Rank: 70
FXZ Omega Ratio Rank: 66
FXZ Calmar Ratio Rank: 81
FXZ Martin Ratio Rank: 80

QQQ

QQQ Risk / Return Rank: 73
QQQ Sharpe Ratio Rank: 79
QQQ Sortino Ratio Rank: 75
QQQ Omega Ratio Rank: 74
QQQ Calmar Ratio Rank: 69
QQQ Martin Ratio Rank: 71

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.

FXZ vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Materials AlphaDEX Fund (FXZ) 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.

	FXZ	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.45	2.64	-0.18
Sortino ratio: Return per unit of downside risk	3.21	3.45	-0.23
Omega ratio: Gain probability vs. loss probability	1.40	1.45	-0.05
Calmar ratio: Return relative to maximum drawdown	4.20	3.51	+0.69
Martin ratio: Return relative to average drawdown	15.80	13.49	+2.31
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FXZ vs. QQQ - Sharpe Ratio Comparison

The current FXZ Sharpe Ratio is 2.45, which is comparable to the QQQ Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of FXZ 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.

Sharpe Ratios by Period

	FXZ	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.45	2.64	-0.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.33	0.81	-0.48
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.99	-0.52
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.41	-0.06

Drawdowns

FXZ vs. QQQ - Drawdown Comparison

The maximum FXZ drawdown since its inception was -65.46%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for FXZ and QQQ.

Drawdown Indicators

	FXZ	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-65.46%	-82.97%	+17.51%
Max Drawdown (1Y) Largest decline over 1 year	-12.75%	-11.96%	-0.79%
Max Drawdown (3Y) Largest decline over 3 years	-33.99%	-22.77%	-11.22%
Max Drawdown (5Y) Largest decline over 5 years	-33.99%	-35.12%	+1.13%
Max Drawdown (10Y) Largest decline over 10 years	-49.41%	-35.12%	-14.29%
Current Drawdown Current decline from peak	-0.40%	-0.26%	-0.14%
Average Drawdown Average peak-to-trough decline	-11.36%	-32.79%	+21.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.38%	3.11%	+0.27%

Volatility

FXZ vs. QQQ - Volatility Comparison

First Trust Materials AlphaDEX Fund (FXZ) has a higher volatility of 7.04% compared to Invesco QQQ ETF (QQQ) at 4.49%. This indicates that FXZ'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.

Volatility by Period

	FXZ	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.04%	4.49%	+2.55%
Volatility (6M) Calculated over the trailing 6-month period	16.40%	12.10%	+4.30%
Volatility (1Y) Calculated over the trailing 1-year period	21.87%	15.94%	+5.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.13%	22.38%	+1.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.87%	22.29%	+2.58%

FXZ vs. QQQ - Expense Ratio Comparison

FXZ has a 0.67% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

FXZ vs. QQQ - Dividend Comparison

FXZ's dividend yield for the trailing twelve months is around 1.38%, more than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXZ First Trust Materials AlphaDEX Fund	1.38%	1.74%	1.81%	1.97%	1.56%	1.11%	1.51%	1.58%	1.38%	1.01%	1.19%	1.26%
QQQ Invesco QQQ ETF	0.38%	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 FXZ and QQQ in my portfolio?

FXZ and QQQ have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FXZ or QQQ?

FXZ has higher volatility (7.04%) compared to QQQ (4.49%). In terms of maximum drawdown, FXZ dropped -65.46% vs QQQ's -82.97%.

Which ETF is better, FXZ or QQQ?

On 10-year performance, QQQ leads with 21.94% vs 11.67% for FXZ. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 4.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXZ or QQQ?

Over the 10-year period, QQQ has performed better with a 21.94% return vs 11.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXZ or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.67% for FXZ.

Which ETF pays a higher dividend yield, FXZ or QQQ?

FXZ has the higher dividend yield at 1.38%, compared with 0.38% for QQQ.

What is the main difference between FXZ and QQQ?

FXZ is categorized as Materials, while QQQ is Nasdaq-100. FXZ tracks StrataQuant Materials Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.67% for FXZ and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.64 vs 2.45), 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.