FDRR vs QQQ
Fidelity Dividend ETF for Rising Rates vs Invesco QQQ Trust, Series 1
Which is better, FDRR or QQQ?
Large Cap Value against Large Cap Growth.
FDRR has a lower expense ratio. FDRR led over 1Y, QQQ over 3Y, 5Y and the full window. FDRR is less concentrated, with 42.8% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FDRR | QQQ |
|---|---|---|
| Expense Ratio | 0.15%Best | 0.18% |
| AUM | $737M | $483.5B |
| Dividend Yield | 2.02% | 0.44% |
| Holdings | 116 | 107 |
| YTD Return | +15.65% | +16.87%Best |
| 1Y Return | +23.21%Best | +22.98% |
| 3Y Return (annualized) | +22.15% | +24.98%Best |
| 5Y Return (annualized) | +13.35% | +14.39%Best |
| Volatility (annualized) | 15.2%Best | 19.0% |
| Max Drawdown | -37.6% | -35.1%Best |
| $10,000 over 5 years | $18,711 | $19,586Best |
| Top 10 Weight | 42.8%Best | 46.5% |
| Fund Family | Fidelity Investments (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Sep 12, 2016 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Sep 15, 2016 to Sep 11, 2026 (10 years).
FDRR vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 10 years both funds cover.
FDRR vs QQQ Performance
Fidelity Dividend ETF for Rising Rates (FDRR) is an ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FDRR returned +23.21% while QQQ returned +22.98%. Year to date, FDRR is up 15.65% versus a gain of 16.87% for QQQ.
Over three years, FDRR compounded at +22.15% per year against +24.98% for QQQ; over five years the annualized figures are +13.35% and +14.39% respectively. Across the full 10-year window we track, QQQ has the edge at +20.19% annualized vs +12.37%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.0% compared with 15.2% for FDRR. 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 -37.6% for FDRR and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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
FDRR 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, FDRR currently yields 2.02% against 0.44% for QQQ.
Holdings Overlap
39.7% of FDRR's money is in holdings QQQ also owns. 38.7% of QQQ's money is in holdings FDRR also owns.
The two portfolios partly overlap.
20 positions in common, counted across the 111 positions we hold weights for in FDRR and 102 in QQQ, against full books of 116 and 107.
What only one of them owns
Our book lists 75 positions for QQQ that do not appear in our book for FDRR (58.4% of the fund), and 81 for FDRR that do not appear in QQQ (55.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FDRR | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 8.34% | 8.44% | 0.10% |
| AAPLApple, Inc | 7.27% | 7.27% | 0.00% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 6.11% | 5.76% | 0.35% |
| GOOGLAlphabet A Usd 0.001 | 4.70% | 3.36% | 1.34% |
| AVGOBroadcom Inc | 3.89% | 3.16% | 0.73% |
| METAMeta Platforms, Inc. | 1.87% | 2.78% | 0.91% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.97% | 2.10% | 0.13% |
| LINLinde Plc Ordinary Shares | 0.47% | 1.00% | 0.53% |
| SBUXStarbucks Corp | 0.93% | 0.53% | 0.40% |
| PEPPepsico Inc. | 0.55% | 0.83% | 0.28% |
39.7% of FDRR is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FDRR or QQQ?
FDRR has an expense ratio of 0.15% while QQQ charges 0.18%. FDRR is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, FDRR or QQQ?
Over the past year FDRR returned +23.21% vs +22.98% for QQQ, so FDRR leads on 1-year performance. Over the longest common window we track (10 years), FDRR annualized +12.37% vs +20.19% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDRR or QQQ?
QQQ has been the more volatile fund at 19.0% annualized versus 15.2% for FDRR. Worst drawdown: FDRR -37.6% vs QQQ -35.1%.
Should I hold both FDRR and QQQ?
FDRR and QQQ have a monthly-return correlation of 0.79, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FDRR and QQQ?
39.7% of FDRR's money is in holdings QQQ also owns. 38.7% of QQQ's is in holdings FDRR also owns. They hold 20 positions in common, counted across the 111 positions we hold weights for in FDRR and 102 in QQQ.
Which pays a higher dividend, FDRR or QQQ?
FDRR yields 2.02% while QQQ yields 0.44%, so FDRR currently pays the higher dividend yield.
Is QQQ better than FDRR?
FDRR has a lower expense ratio. FDRR led over 1Y, QQQ over 3Y, 5Y and the full window. FDRR is less concentrated, with 42.8% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.