FDLO vs QQQ
Fidelity Low Volatility Factor ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
FDLO has a lower expense ratio. QQQ delivered stronger 1-year returns. FDLO offers more diversification with 125 holdings.
Side-by-Side Comparison
| Metric | FDLO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $1.4B | $455.8B | |
| Dividend Yield | 1.44% | 0.41% | |
| Holdings | 130 | 108 | |
| YTD Return | +10.49% | +19.68% | |
| 1Y Return | +15.27% | +26.75% | |
| 3Y Return (annualized) | +14.62% | +26.25% | |
| 5Y Return (annualized) | +9.74% | +15.39% | |
| Volatility (annualized) | 13.4% | 30.6% | |
| Max Drawdown | -34.7% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 12, 2016 | Mar 10, 1999 |
FDLO vs QQQ Performance
Fidelity Low Volatility Factor ETF (FDLO) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FDLO returned +15.27% while QQQ returned +26.75%. Year to date, FDLO is up 10.49% versus a gain of 19.68% for QQQ.
Over three years, FDLO compounded at +14.62% per year against +26.25% for QQQ; over five years the annualized figures are +9.74% and +15.39% respectively. Across the full 10-year window we track, QQQ has the edge at +13.15% annualized vs +12.29%. 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 13.4% for FDLO. 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 -34.7% for FDLO 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDLO charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, FDLO currently yields 1.44% against 0.41% for QQQ.
Holdings Overlap
FDLO and QQQ share 27 holdings out of 201 unique holdings combined, representing a 34.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FDLO or QQQ?
FDLO has an expense ratio of 0.15% while QQQ charges 0.18%. FDLO is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, FDLO or QQQ?
Over the past year FDLO returned +15.27% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), FDLO annualized +12.29% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, FDLO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.4% for FDLO. Worst drawdown: FDLO -34.7% vs QQQ -83.0%.
Should I hold both FDLO and QQQ?
FDLO and QQQ have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDLO and QQQ?
FDLO and QQQ share 27 common holdings with a 34.2% weight overlap. Combined, they hold 201 unique securities.
Which pays a higher dividend, FDLO or QQQ?
FDLO yields 1.44% while QQQ yields 0.41%, so FDLO currently pays the higher dividend yield.
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