FLAX vs QQQ
Franklin FTSE Asia ex Japan ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FLAX delivered stronger 1-year returns. FLAX offers more diversification with 1,620 holdings.
Side-by-Side Comparison
| Metric | FLAX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.18% | |
| AUM | $58M | $496.3B | |
| Dividend Yield | 2.08% | 0.44% | |
| Holdings | 1,620 | 108 | |
| YTD Return | +20.11% | +16.23% | |
| 1Y Return | +37.50% | +26.23% | |
| 3Y Return (annualized) | +24.06% | +25.75% | |
| 5Y Return (annualized) | +9.57% | +14.78% | |
| Volatility (annualized) | 18.1% | 30.6% | |
| Max Drawdown | -42.5% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 6, 2018 | Mar 10, 1999 |
FLAX vs QQQ Performance
Franklin FTSE Asia ex Japan ETF (FLAX) 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 FLAX returned +37.50% while QQQ returned +26.23%. Year to date, FLAX is up 20.11% versus a gain of 16.23% for QQQ.
Over three years, FLAX compounded at +24.06% per year against +25.75% for QQQ; over five years the annualized figures are +9.57% and +14.78% respectively. Across the full 9-year window we track, QQQ has the edge at +13.02% annualized vs +7.20%. 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 18.1% for FLAX. 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 -42.5% for FLAX 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLAX charges 0.19% per year while QQQ charges 0.18%. On a $10,000 position that is $19 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, FLAX currently yields 2.08% against 0.44% for QQQ.
Holdings Overlap
FLAX and QQQ share 1 holdings out of 1245 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FLAX | Weight in QQQ | Difference |
|---|---|---|---|
| PDD:IE | 0.49% | 0.27% | 0.22% |
Frequently Asked Questions
Which is cheaper, FLAX or QQQ?
FLAX has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, FLAX or QQQ?
Over the past year FLAX returned +37.50% vs +26.23% for QQQ, so FLAX leads on 1-year performance. Over the longest common window we track (9 years), FLAX annualized +7.20% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FLAX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.1% for FLAX. Worst drawdown: FLAX -42.5% vs QQQ -83.0%.
Should I hold both FLAX and QQQ?
FLAX and QQQ have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLAX and QQQ?
FLAX and QQQ share 1 common holdings with a 0.3% weight overlap. Combined, they hold 1245 unique securities.
Which pays a higher dividend, FLAX or QQQ?
FLAX yields 2.08% while QQQ yields 0.44%, so FLAX 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.