FDV vs QQQ
Federated Hermes US Strategic Dividend 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 103 holdings.
Side-by-Side Comparison
| Metric | FDV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $850M | $455.8B | |
| Dividend Yield | 2.94% | 0.41% | |
| Holdings | 52 | 108 | |
| YTD Return | +18.02% | +17.46% | |
| 1Y Return | +22.77% | +26.02% | |
| 3Y Return (annualized) | +15.38% | +25.51% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 12.2% | 30.6% | |
| Max Drawdown | -16.7% | -83.0% | |
| Fund Family | Federated Hermes Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 15, 2022 | Mar 10, 1999 |
FDV vs QQQ Performance
Federated Hermes US Strategic Dividend ETF (FDV) is a ETF from Federated Hermes Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FDV returned +22.77% while QQQ returned +26.02%. Year to date, FDV is up 18.02% versus a gain of 17.46% for QQQ.
Over three years, FDV compounded at +15.38% per year against +25.51% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.08% annualized vs +11.44%. 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 12.2% for FDV. 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 -16.7% for FDV 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 0.18. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FDV charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, FDV currently yields 2.94% against 0.41% for QQQ.
Holdings Overlap
FDV and QQQ share 7 holdings out of 146 unique holdings combined, representing a 4.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FDV or QQQ?
FDV has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, FDV or QQQ?
Over the past year FDV returned +22.77% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), FDV annualized +11.44% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, FDV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.2% for FDV. Worst drawdown: FDV -16.7% vs QQQ -83.0%.
Should I hold both FDV and QQQ?
FDV and QQQ have a monthly-return correlation of 0.18, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDV and QQQ?
FDV and QQQ share 7 common holdings with a 4.2% weight overlap. Combined, they hold 146 unique securities.
Which pays a higher dividend, FDV or QQQ?
FDV yields 2.94% while QQQ yields 0.41%, so FDV currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.