FARX vs QQQ
FARX vs QQQ
Frontier Asset Absolute Return ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | FARX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.18% | |
| AUM | $13M | $455.8B | |
| Dividend Yield | 2.90% | 0.41% | |
| Holdings | 13 | 108 | |
| YTD Return | +9.24% | +18.20% | |
| 1Y Return | +18.26% | +27.63% | |
| 3Y Return (annualized) | - | +25.54% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 5.0% | 30.6% | |
| Max Drawdown | -5.8% | -83.0% | |
| Fund Family | Frontier Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 19, 2024 | Mar 10, 1999 |
FARX vs QQQ Performance
Frontier Asset Absolute Return ETF (FARX) is a ETF from Frontier Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FARX returned +18.26% while QQQ returned +27.63%. Year to date, FARX is up 9.24% versus a gain of 18.20% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 5.0% for FARX. 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 -5.8% for FARX 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FARX charges 0.95% per year while QQQ charges 0.18%. On a $10,000 position that is $95 vs $18 annually, a gap of $77 per year that compounds over a long holding period. On income, FARX currently yields 2.90% against 0.41% for QQQ.
Holdings Overlap
FARX and QQQ share 0 holdings out of 115 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, FARX or QQQ?
FARX has an expense ratio of 0.95% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, FARX or QQQ?
Over the past year FARX returned +18.26% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), FARX annualized +12.76% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, FARX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.0% for FARX. Worst drawdown: FARX -5.8% vs QQQ -83.0%.
Should I hold both FARX and QQQ?
FARX and QQQ have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FARX and QQQ?
FARX and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 115 unique securities.
Which pays a higher dividend, FARX or QQQ?
FARX yields 2.90% while QQQ yields 0.41%, so FARX currently pays the higher dividend yield.
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