FDRR vs QQQ
Fidelity Dividend ETF for Rising Rates vs Invesco QQQ Trust, Series 1
Quick Verdict
FDRR has a lower expense ratio. QQQ delivered stronger 1-year returns. FDRR offers more diversification with 128 holdings.
Side-by-Side Comparison
| Metric | FDRR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $737M | $496.3B | |
| Dividend Yield | 2.08% | 0.44% | |
| Holdings | 128 | 108 | |
| YTD Return | +14.11% | +16.23% | |
| 1Y Return | +25.12% | +26.23% | |
| 3Y Return (annualized) | +21.87% | +25.75% | |
| 5Y Return (annualized) | +12.88% | +14.78% | |
| Volatility (annualized) | 15.3% | 30.6% | |
| Max Drawdown | -37.6% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 12, 2016 | Mar 10, 1999 |
FDRR vs QQQ Performance
Fidelity Dividend ETF for Rising Rates (FDRR) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FDRR returned +25.12% while QQQ returned +26.23%. Year to date, FDRR is up 14.11% versus a gain of 16.23% for QQQ.
Over three years, FDRR compounded at +21.87% per year against +25.75% for QQQ; over five years the annualized figures are +12.88% and +14.78% respectively. Across the full 10-year window we track, QQQ has the edge at +13.02% annualized vs +12.30%. 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 15.3% 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 -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
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 2.08% against 0.44% for QQQ.
Holdings Overlap
FDRR and QQQ share 20 holdings out of 194 unique holdings combined, representing a 35.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $3 per year of difference.
Which performed better, FDRR or QQQ?
Over the past year FDRR returned +25.12% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), FDRR annualized +12.30% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FDRR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.3% for FDRR. Worst drawdown: FDRR -37.6% vs QQQ -83.0%.
Should I hold both FDRR and QQQ?
FDRR 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 FDRR and QQQ?
FDRR and QQQ share 20 common holdings with a 35.4% weight overlap. Combined, they hold 194 unique securities.
Which pays a higher dividend, FDRR or QQQ?
FDRR yields 2.08% while QQQ yields 0.44%, so FDRR currently pays the higher dividend yield.
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