FHLC vs QQQ
Fidelity MSCI Health Care Index ETF vs Invesco QQQ Trust, Series 1
Which is better, FHLC or QQQ?
Large Cap Blend against Large Cap Growth.
FHLC has a lower expense ratio. FHLC led over 1Y, QQQ over 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 51.5%.
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 | FHLC | QQQ |
|---|---|---|
| Expense Ratio | 0.08%Best | 0.18% |
| AUM | $3.3B | $483.5B |
| Dividend Yield | 1.23% | 0.44% |
| Holdings | 341 | 107 |
| YTD Return | +8.66% | +15.86%Best |
| 1Y Return | +23.98%Best | +22.63% |
| 3Y Return (annualized) | +10.19% | +24.15%Best |
| 5Y Return (annualized) | +5.29% | +14.16%Best |
| Volatility (annualized) | 14.4%Best | 18.0% |
| Max Drawdown | -29.2%Best | -35.1% |
| $10,000 over 5 years | $12,940 | $19,390Best |
| Top 10 Weight | 51.5% | 46.5%Best |
| Fund Family | Fidelity Investments (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Oct 21, 2013 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Oct 24, 2013 to Sep 10, 2026 (12.9 years).
FHLC 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 12.9 years both funds cover.
FHLC vs QQQ Performance
Fidelity MSCI Health Care Index ETF (FHLC) is an ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FHLC returned +23.98% while QQQ returned +22.63%. Year to date, FHLC is up 8.66% versus a gain of 15.86% for QQQ.
Over three years, FHLC compounded at +10.19% per year against +24.15% for QQQ; over five years the annualized figures are +5.29% and +14.16% respectively. Across the full 13-year window we track, QQQ has the edge at +18.49% annualized vs +10.09%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.0% compared with 14.4% 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 -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 0.61. They move together some of the time, and apart the rest.
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 1.23% against 0.44% for QQQ.
Holdings Overlap
12.5% of FHLC's money is in holdings QQQ also owns. 3.8% of QQQ's money is in holdings FHLC also owns.
FHLC and QQQ share little of their money.
9 positions in common, counted across the 325 positions we hold weights for in FHLC and 102 in QQQ, against full books of 341 and 107.
What only one of them owns
Our book lists 86 positions for QQQ that do not appear in our book for FHLC (93.3% of the fund), and 296 for FHLC that do not appear in QQQ (86.0%).
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 FHLC | Weight in QQQ | Difference |
|---|---|---|---|
| AMGNAmgen Inc. | 3.20% | 0.97% | 2.23% |
| GILDGilead Sciences Inc | 2.50% | 0.72% | 1.78% |
| VRTXVertex Pharmaceuticals Inc | 1.90% | 0.54% | 1.36% |
| ISRGIntuitive Surgical Inc | 1.84% | 0.58% | 1.26% |
| REGNRegeneron Pharmaceuticals, Inc. | 1.13% | 0.35% | 0.78% |
| IDXXIdexx Laboratories Inc. | 0.60% | 0.20% | 0.40% |
| DXCMDexcom Inc. | 0.48% | 0.14% | 0.34% |
| GEHCGe Healthcare Technologies Inc | 0.45% | 0.14% | 0.31% |
| ALNYAlnylam Pharmaceuticals Inc. | 0.44% | 0.13% | 0.31% |
You are not choosing between two funds in isolation.
Whichever of FHLC and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $10 a year on a $10,000 investment.
Which performed better, FHLC or QQQ?
Over the past year FHLC returned +23.98% vs +22.63% for QQQ, so FHLC leads on 1-year performance. Over the longest common window we track (13 years), FHLC annualized +10.09% vs +18.49% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FHLC or QQQ?
QQQ has been the more volatile fund at 18.0% annualized versus 14.4% for FHLC. Worst drawdown: FHLC -29.2% vs QQQ -35.1%.
Should I hold both FHLC and QQQ?
FHLC and QQQ have a monthly-return correlation of 0.61, 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 FHLC and QQQ?
12.5% of FHLC's money is in holdings QQQ also owns. 3.8% of QQQ's is in holdings FHLC also owns. They hold 9 positions in common, counted across the 325 positions we hold weights for in FHLC and 102 in QQQ.
Which pays a higher dividend, FHLC or QQQ?
FHLC yields 1.23% while QQQ yields 0.44%, so FHLC currently pays the higher dividend yield.
Is QQQ better than FHLC?
FHLC has a lower expense ratio. FHLC led over 1Y, QQQ over 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 51.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.