FLCC vs QQQ
Federated Hermes MDT Large Cap Core ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FLCC offers more diversification with 154 holdings.
Side-by-Side Comparison
| Metric | FLCC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.18% | |
| AUM | $118M | $455.8B | |
| Dividend Yield | 0.47% | 0.41% | |
| Holdings | 156 | 108 | |
| YTD Return | +14.22% | +18.31% | |
| 1Y Return | +18.89% | +25.37% | |
| 3Y Return (annualized) | - | +25.79% | |
| 5Y Return (annualized) | - | +15.20% | |
| Volatility (annualized) | 12.8% | 30.6% | |
| Max Drawdown | -19.2% | -83.0% | |
| Fund Family | Federated Hermes | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 30, 2024 | Mar 10, 1999 |
FLCC vs QQQ Performance
Federated Hermes MDT Large Cap Core ETF (FLCC) is a ETF from Federated Hermes and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FLCC returned +18.89% while QQQ returned +25.37%. Year to date, FLCC is up 14.22% versus a gain of 18.31% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 12.8% for FLCC. 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 -19.2% for FLCC 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FLCC charges 0.29% per year while QQQ charges 0.18%. On a $10,000 position that is $29 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, FLCC currently yields 0.47% against 0.41% for QQQ.
Holdings Overlap
FLCC and QQQ share 37 holdings out of 220 unique holdings combined, representing a 42.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FLCC or QQQ?
FLCC has an expense ratio of 0.29% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, FLCC or QQQ?
Over the past year FLCC returned +18.89% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), FLCC annualized +20.52% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, FLCC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.8% for FLCC. Worst drawdown: FLCC -19.2% vs QQQ -83.0%.
Should I hold both FLCC and QQQ?
FLCC and QQQ have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLCC and QQQ?
FLCC and QQQ share 37 common holdings with a 42.9% weight overlap. Combined, they hold 220 unique securities.
Which pays a higher dividend, FLCC or QQQ?
FLCC yields 0.47% while QQQ yields 0.41%, so FLCC currently pays the higher dividend yield.
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