FLAU vs QQQ
Franklin FTSE Australia ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
FLAU has a lower expense ratio. QQQ delivered stronger 1-year returns. FLAU offers more diversification with 111 holdings.
Side-by-Side Comparison
| Metric | FLAU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.18% | |
| AUM | $181M | $496.3B | |
| Dividend Yield | 3.05% | 0.44% | |
| Holdings | 111 | 108 | |
| YTD Return | +13.73% | +16.23% | |
| 1Y Return | +15.91% | +26.23% | |
| 3Y Return (annualized) | +15.76% | +25.75% | |
| 5Y Return (annualized) | +8.07% | +14.78% | |
| Volatility (annualized) | 20.1% | 30.6% | |
| Max Drawdown | -46.0% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 2, 2017 | Mar 10, 1999 |
FLAU vs QQQ Performance
Franklin FTSE Australia ETF (FLAU) is a ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FLAU returned +15.91% while QQQ returned +26.23%. Year to date, FLAU is up 13.73% versus a gain of 16.23% for QQQ.
Over three years, FLAU compounded at +15.76% per year against +25.75% for QQQ; over five years the annualized figures are +8.07% and +14.78% respectively. Across the full 9-year window we track, QQQ has the edge at +13.02% annualized vs +6.75%. 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 20.1% for FLAU. 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 -46.0% for FLAU 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLAU charges 0.09% per year while QQQ charges 0.18%. On a $10,000 position that is $9 vs $18 annually, a gap of $9 per year that compounds over a long holding period. On income, FLAU currently yields 3.05% against 0.44% for QQQ.
Holdings Overlap
FLAU and QQQ share 0 holdings out of 206 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FLAU or QQQ?
FLAU has an expense ratio of 0.09% while QQQ charges 0.18%. FLAU is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, FLAU or QQQ?
Over the past year FLAU returned +15.91% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), FLAU annualized +6.75% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FLAU or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.1% for FLAU. Worst drawdown: FLAU -46.0% vs QQQ -83.0%.
Should I hold both FLAU and QQQ?
FLAU and QQQ have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLAU and QQQ?
FLAU and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 206 unique securities.
Which pays a higher dividend, FLAU or QQQ?
FLAU yields 3.05% while QQQ yields 0.44%, so FLAU currently pays the higher dividend yield.
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