FLDR vs QQQ
Fidelity Low Duration Bond Factor ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
FLDR has a lower expense ratio. QQQ delivered stronger 1-year returns. FLDR offers more diversification with 355 holdings.
Side-by-Side Comparison
| Metric | FLDR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $2.0B | $496.3B | |
| Dividend Yield | 4.64% | 0.44% | |
| Holdings | 355 | 108 | |
| YTD Return | -0.21% | +16.23% | |
| 1Y Return | +1.22% | +26.23% | |
| 3Y Return (annualized) | +4.39% | +25.75% | |
| 5Y Return (annualized) | +3.19% | +14.78% | |
| Volatility (annualized) | 2.1% | 30.6% | |
| Max Drawdown | -12.2% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 12, 2018 | Mar 10, 1999 |
FLDR vs QQQ Performance
Fidelity Low Duration Bond Factor ETF (FLDR) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FLDR returned +1.22% while QQQ returned +26.23%. Year to date, FLDR is down 0.21% versus a gain of 16.23% for QQQ.
Over three years, FLDR compounded at +4.39% per year against +25.75% for QQQ; over five years the annualized figures are +3.19% and +14.78% respectively. Across the full 8-year window we track, QQQ has the edge at +13.02% annualized vs +2.87%. 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 2.1% for FLDR. 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 -12.2% for FLDR 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLDR charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, FLDR currently yields 4.64% against 0.44% for QQQ.
Holdings Overlap
FLDR and QQQ share 3 holdings out of 164 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FLDR or QQQ?
FLDR has an expense ratio of 0.15% while QQQ charges 0.18%. FLDR is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, FLDR or QQQ?
Over the past year FLDR returned +1.22% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), FLDR annualized +2.87% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FLDR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 2.1% for FLDR. Worst drawdown: FLDR -12.2% vs QQQ -83.0%.
Should I hold both FLDR and QQQ?
FLDR and QQQ have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLDR and QQQ?
FLDR and QQQ share 3 common holdings with a 0.5% weight overlap. Combined, they hold 164 unique securities.
Which pays a higher dividend, FLDR or QQQ?
FLDR yields 4.64% while QQQ yields 0.44%, so FLDR currently pays the higher dividend yield.
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