FCOM vs QQQ
Fidelity MSCI Communication Services Index ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
FCOM has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | FCOM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.18% | |
| AUM | $1.7B | $455.8B | |
| Dividend Yield | 1.01% | 0.41% | |
| Holdings | 92 | 108 | |
| YTD Return | -2.62% | +18.20% | |
| 1Y Return | +8.41% | +27.63% | |
| 3Y Return (annualized) | +20.26% | +25.54% | |
| 5Y Return (annualized) | +6.20% | +15.12% | |
| Volatility (annualized) | 17.1% | 30.6% | |
| Max Drawdown | -46.8% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2013 | Mar 10, 1999 |
FCOM vs QQQ Performance
Fidelity MSCI Communication Services Index ETF (FCOM) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FCOM returned +8.41% while QQQ returned +27.63%. Year to date, FCOM is down 2.62% versus a gain of 18.20% for QQQ.
Over three years, FCOM compounded at +20.26% per year against +25.54% for QQQ; over five years the annualized figures are +6.20% and +15.12% respectively. Across the full 13-year window we track, QQQ has the edge at +13.11% annualized vs +8.81%. 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 17.1% for FCOM. 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 -46.8% for FCOM 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FCOM charges 0.08% per year while QQQ charges 0.18%. On a $10,000 position that is $8 vs $18 annually, a gap of $10 per year that compounds over a long holding period. On income, FCOM currently yields 1.01% against 0.41% for QQQ.
Holdings Overlap
FCOM and QQQ share 9 holdings out of 181 unique holdings combined, representing a 12.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FCOM or QQQ?
FCOM has an expense ratio of 0.08% while QQQ charges 0.18%. FCOM is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, FCOM or QQQ?
Over the past year FCOM returned +8.41% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), FCOM annualized +8.81% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, FCOM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.1% for FCOM. Worst drawdown: FCOM -46.8% vs QQQ -83.0%.
Should I hold both FCOM and QQQ?
FCOM and QQQ have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCOM and QQQ?
FCOM and QQQ share 9 common holdings with a 12.8% weight overlap. Combined, they hold 181 unique securities.
Which pays a higher dividend, FCOM or QQQ?
FCOM yields 1.01% while QQQ yields 0.41%, so FCOM currently pays the higher dividend yield.
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