FITE vs QQQ

FITE vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. FITE delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: FITEMore Diversified: QQQ

Side-by-Side Comparison

MetricFITEQQQWinner
Expense Ratio0.45%0.18%
AUM$160M$496.3B
Dividend Yield0.13%0.44%
Holdings81108
YTD Return+34.46%+17.30%
1Y Return+48.56%+24.93%
3Y Return (annualized)+35.03%+26.19%
5Y Return (annualized)+18.54%+15.34%
Volatility (annualized)21.4%30.6%
Max Drawdown-37.2%-83.0%
Fund FamilyState Street Investment ManagementInvesco (US)
CategoryEquityEquity
InceptionDec 18, 2017Mar 10, 1999

FITE vs QQQ Performance

State Street SPDR S&P Kensho Future Security ETF (FITE) is a ETF from State Street Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FITE returned +48.56% while QQQ returned +24.93%. Year to date, FITE is up 34.46% versus a gain of 17.30% for QQQ.

Over three years, FITE compounded at +35.03% per year against +26.19% for QQQ; over five years the annualized figures are +18.54% and +15.34% respectively. Across the full 9-year window we track, FITE has the edge at +17.20% annualized vs +13.06%. 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 21.4% for FITE. 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 -37.2% for FITE 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 0.78. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FITE charges 0.45% per year while QQQ charges 0.18%. On a $10,000 position that is $45 vs $18 annually, a gap of $27 per year that compounds over a long holding period. On income, FITE currently yields 0.13% against 0.44% for QQQ.

Holdings Overlap

6.1%overlap

FITE and QQQ share 7 holdings out of 174 unique holdings combined, representing a 6.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FITEWeight in QQQDifference
AVGO1.41%3.16%1.75%
CSCO1.29%2.10%0.81%
PANW1.75%1.30%0.45%
CRWDProProPro
FTNTProProPro
DDOGProProPro
RKLBProProPro
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Frequently Asked Questions

Which is cheaper, FITE or QQQ?

FITE has an expense ratio of 0.45% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $27 per year of difference.

Which performed better, FITE or QQQ?

Over the past year FITE returned +48.56% vs +24.93% for QQQ, so FITE leads on 1-year performance. Over the longest common window we track (9 years), FITE annualized +17.20% vs +13.06% for QQQ. Past performance does not guarantee future results.

Which is riskier, FITE or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 21.4% for FITE. Worst drawdown: FITE -37.2% vs QQQ -83.0%.

Should I hold both FITE and QQQ?

FITE and QQQ have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FITE and QQQ?

FITE and QQQ share 7 common holdings with a 6.1% weight overlap. Combined, they hold 174 unique securities.

Which pays a higher dividend, FITE or QQQ?

FITE yields 0.13% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.

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