FCSH vs QQQ
Federated Hermes Short Duration Corporate ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FCSH offers more diversification with 143 holdings.
Side-by-Side Comparison
| Metric | FCSH | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.18% | |
| AUM | $65M | $455.8B | |
| Dividend Yield | 4.08% | 0.41% | |
| Holdings | 175 | 108 | |
| YTD Return | +1.01% | +18.31% | |
| 1Y Return | +3.15% | +25.37% | |
| 3Y Return (annualized) | +5.29% | +25.79% | |
| 5Y Return (annualized) | - | +15.20% | |
| Volatility (annualized) | 3.2% | 30.6% | |
| Max Drawdown | -8.5% | -83.0% | |
| Fund Family | Federated Hermes | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 16, 2021 | Mar 10, 1999 |
FCSH vs QQQ Performance
Federated Hermes Short Duration Corporate ETF (FCSH) is a ETF from Federated Hermes and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FCSH returned +3.15% while QQQ returned +25.37%. Year to date, FCSH is up 1.01% versus a gain of 18.31% for QQQ.
Over three years, FCSH compounded at +5.29% per year against +25.79% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.10% annualized vs +2.46%. 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 3.2% for FCSH. 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 -8.5% for FCSH 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FCSH charges 0.30% per year while QQQ charges 0.18%. On a $10,000 position that is $30 vs $18 annually, a gap of $12 per year that compounds over a long holding period. On income, FCSH currently yields 4.08% against 0.41% for QQQ.
Holdings Overlap
FCSH and QQQ share 0 holdings out of 246 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, FCSH or QQQ?
FCSH has an expense ratio of 0.30% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, FCSH or QQQ?
Over the past year FCSH returned +3.15% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), FCSH annualized +2.46% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, FCSH or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.2% for FCSH. Worst drawdown: FCSH -8.5% vs QQQ -83.0%.
Should I hold both FCSH and QQQ?
FCSH and QQQ have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCSH and QQQ?
FCSH and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 246 unique securities.
Which pays a higher dividend, FCSH or QQQ?
FCSH yields 4.08% while QQQ yields 0.41%, so FCSH currently pays the higher dividend yield.
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