FDHY vs QQQ
Fidelity Enhanced High Yield ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FDHY offers more diversification with 302 holdings.
Side-by-Side Comparison
| Metric | FDHY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $571M | $496.3B | |
| Dividend Yield | 7.13% | 0.44% | |
| Holdings | 302 | 108 | |
| YTD Return | +3.60% | +16.23% | |
| 1Y Return | +7.18% | +26.23% | |
| 3Y Return (annualized) | +9.16% | +25.75% | |
| 5Y Return (annualized) | +4.05% | +14.78% | |
| Volatility (annualized) | 8.0% | 30.6% | |
| Max Drawdown | -20.3% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 12, 2018 | Mar 10, 1999 |
FDHY vs QQQ Performance
Fidelity Enhanced High Yield ETF (FDHY) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FDHY returned +7.18% while QQQ returned +26.23%. Year to date, FDHY is up 3.60% versus a gain of 16.23% for QQQ.
Over three years, FDHY compounded at +9.16% per year against +25.75% for QQQ; over five years the annualized figures are +4.05% and +14.78% respectively. Across the full 8-year window we track, QQQ has the edge at +13.02% annualized vs +4.18%. 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 8.0% for FDHY. 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 -20.3% for FDHY 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDHY charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, FDHY currently yields 7.13% against 0.44% for QQQ.
Holdings Overlap
FDHY and QQQ share 0 holdings out of 105 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, FDHY or QQQ?
FDHY has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, FDHY or QQQ?
Over the past year FDHY returned +7.18% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), FDHY annualized +4.18% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FDHY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.0% for FDHY. Worst drawdown: FDHY -20.3% vs QQQ -83.0%.
Should I hold both FDHY and QQQ?
FDHY and QQQ have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDHY and QQQ?
FDHY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, FDHY or QQQ?
FDHY yields 7.13% while QQQ yields 0.44%, so FDHY currently pays the higher dividend yield.
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