FHLC vs QQQ
Fidelity MSCI Health Care Index ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
FHLC has a lower expense ratio. FHLC delivered stronger 1-year returns. FHLC offers more diversification with 341 holdings.
Side-by-Side Comparison
| Metric | FHLC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.18% | |
| AUM | $3.3B | $496.3B | |
| Dividend Yield | 1.29% | 0.44% | |
| Holdings | 341 | 108 | |
| YTD Return | +12.95% | +16.23% | |
| 1Y Return | +29.44% | +26.23% | |
| 3Y Return (annualized) | +11.52% | +25.75% | |
| 5Y Return (annualized) | +5.91% | +14.78% | |
| Volatility (annualized) | 14.5% | 30.6% | |
| Max Drawdown | -29.2% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2013 | Mar 10, 1999 |
FHLC vs QQQ Performance
Fidelity MSCI Health Care Index ETF (FHLC) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FHLC returned +29.44% while QQQ returned +26.23%. Year to date, FHLC is up 12.95% versus a gain of 16.23% for QQQ.
Over three years, FHLC compounded at +11.52% per year against +25.75% for QQQ; over five years the annualized figures are +5.91% and +14.78% respectively. Across the full 13-year window we track, QQQ has the edge at +13.02% annualized vs +10.47%. 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 14.5% for FHLC. 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 -29.2% for FHLC 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FHLC charges 0.08% per year while QQQ charges 0.18%. On a $10,000 position that is $8 vs $18 annually, a gap of $10 per year that compounds over a long holding period. On income, FHLC currently yields 1.29% against 0.44% for QQQ.
Holdings Overlap
FHLC and QQQ share 9 holdings out of 404 unique holdings combined, representing a 3.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FHLC or QQQ?
FHLC has an expense ratio of 0.08% while QQQ charges 0.18%. FHLC is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, FHLC or QQQ?
Over the past year FHLC returned +29.44% vs +26.23% for QQQ, so FHLC leads on 1-year performance. Over the longest common window we track (13 years), FHLC annualized +10.47% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FHLC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.5% for FHLC. Worst drawdown: FHLC -29.2% vs QQQ -83.0%.
Should I hold both FHLC and QQQ?
FHLC and QQQ have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FHLC and QQQ?
FHLC and QQQ share 9 common holdings with a 3.8% weight overlap. Combined, they hold 404 unique securities.
Which pays a higher dividend, FHLC or QQQ?
FHLC yields 1.29% while QQQ yields 0.44%, so FHLC currently pays the higher dividend yield.
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