FIXD vs QQQ
FIXD vs QQQ
First Trust Smith Opportunistic Fixed Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FIXD offers more diversification with 321 holdings.
Side-by-Side Comparison
| Metric | FIXD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.18% | |
| AUM | $3.2B | $455.8B | |
| Dividend Yield | 4.68% | 0.41% | |
| Holdings | 446 | 108 | |
| YTD Return | -0.08% | +18.34% | |
| 1Y Return | +2.20% | +28.94% | |
| 3Y Return (annualized) | +3.99% | +25.28% | |
| 5Y Return (annualized) | -0.89% | +15.22% | |
| Volatility (annualized) | 5.7% | 30.6% | |
| Max Drawdown | -21.8% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 14, 2017 | Mar 10, 1999 |
FIXD vs QQQ Performance
First Trust Smith Opportunistic Fixed Income ETF (FIXD) is a ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FIXD returned +2.20% while QQQ returned +28.94%. Year to date, FIXD is down 0.08% versus a gain of 18.34% for QQQ.
Over three years, FIXD compounded at +3.99% per year against +25.28% for QQQ; over five years the annualized figures are -0.89% and +15.22% respectively. Across the full 10-year window we track, QQQ has the edge at +13.12% annualized vs +0.51%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 5.7% for FIXD. 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 -21.8% for FIXD 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FIXD charges 0.65% per year while QQQ charges 0.18%. On a $10,000 position that is $65 vs $18 annually, a gap of $47 per year that compounds over a long holding period. On income, FIXD currently yields 4.68% against 0.41% for QQQ.
Holdings Overlap
FIXD and QQQ share 0 holdings out of 424 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, FIXD or QQQ?
FIXD has an expense ratio of 0.65% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, FIXD or QQQ?
Over the past year FIXD returned +2.20% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), FIXD annualized +0.51% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, FIXD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.7% for FIXD. Worst drawdown: FIXD -21.8% vs QQQ -83.0%.
Should I hold both FIXD and QQQ?
FIXD and QQQ have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FIXD and QQQ?
FIXD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 424 unique securities.
Which pays a higher dividend, FIXD or QQQ?
FIXD yields 4.68% while QQQ yields 0.41%, so FIXD currently pays the higher dividend yield.
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