FDG vs QQQ
American Century Focused Dynamic Growth 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 108 holdings.
Side-by-Side Comparison
| Metric | FDG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.18% | |
| AUM | $428M | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 45 | 108 | |
| YTD Return | +3.97% | +17.07% | |
| 1Y Return | +15.16% | +26.39% | |
| 3Y Return (annualized) | +26.87% | +26.08% | |
| 5Y Return (annualized) | +9.98% | +15.18% | |
| Volatility (annualized) | 23.2% | 30.6% | |
| Max Drawdown | -43.7% | -83.0% | |
| Fund Family | American Century ETFs | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 31, 2020 | Mar 10, 1999 |
FDG vs QQQ Performance
American Century Focused Dynamic Growth ETF (FDG) is a ETF from American Century ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FDG returned +15.16% while QQQ returned +26.39%. Year to date, FDG is up 3.97% versus a gain of 17.07% for QQQ.
Over three years, FDG compounded at +26.87% per year against +26.08% for QQQ; over five years the annualized figures are +9.98% and +15.18% respectively. Across the full 6-year window we track, FDG has the edge at +21.28% annualized vs +13.05%. 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 23.2% for FDG. 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 -43.7% for FDG 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FDG charges 0.45% per year while QQQ charges 0.18%. On a $10,000 position that is $45 vs $18 annually, a gap of $27 per year that compounds over a long holding period. On income, FDG currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
FDG and QQQ share 21 holdings out of 125 unique holdings combined, representing a 35.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FDG or QQQ?
FDG has an expense ratio of 0.45% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, FDG or QQQ?
Over the past year FDG returned +15.16% vs +26.39% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), FDG annualized +21.28% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, FDG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 23.2% for FDG. Worst drawdown: FDG -43.7% vs QQQ -83.0%.
Should I hold both FDG and QQQ?
FDG and QQQ have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FDG and QQQ?
FDG and QQQ share 21 common holdings with a 35.9% weight overlap. Combined, they hold 125 unique securities.
Which pays a higher dividend, FDG or QQQ?
FDG yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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