FLGV vs QQQ
Franklin US Treasury Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
FLGV has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | FLGV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.18% | |
| AUM | $1.0B | $496.3B | |
| Dividend Yield | 4.23% | 0.44% | |
| Holdings | 51 | 108 | |
| YTD Return | -0.13% | +16.23% | |
| 1Y Return | +1.80% | +26.23% | |
| 3Y Return (annualized) | +3.75% | +25.75% | |
| 5Y Return (annualized) | -0.54% | +14.78% | |
| Volatility (annualized) | 5.0% | 30.6% | |
| Max Drawdown | -18.4% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 9, 2020 | Mar 10, 1999 |
FLGV vs QQQ Performance
Franklin US Treasury Bond ETF (FLGV) 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 FLGV returned +1.80% while QQQ returned +26.23%. Year to date, FLGV is down 0.13% versus a gain of 16.23% for QQQ.
Over three years, FLGV compounded at +3.75% per year against +25.75% for QQQ; over five years the annualized figures are -0.54% and +14.78% respectively. Across the full 6-year window we track, QQQ has the edge at +13.02% annualized vs -0.85%. 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 5.0% for FLGV. 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 -18.4% for FLGV 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLGV 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, FLGV currently yields 4.23% against 0.44% for QQQ.
Holdings Overlap
FLGV and QQQ share 0 holdings out of 103 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, FLGV or QQQ?
FLGV has an expense ratio of 0.09% while QQQ charges 0.18%. FLGV is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, FLGV or QQQ?
Over the past year FLGV returned +1.80% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), FLGV annualized -0.85% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FLGV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.0% for FLGV. Worst drawdown: FLGV -18.4% vs QQQ -83.0%.
Should I hold both FLGV and QQQ?
FLGV and QQQ have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLGV and QQQ?
FLGV and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, FLGV or QQQ?
FLGV yields 4.23% while QQQ yields 0.44%, so FLGV currently pays the higher dividend yield.
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