FLHY vs QQQ
Franklin High Yield Corporate ETF vs Invesco QQQ Trust, Series 1
Which is better, FLHY or QQQ?
High Yield Bond against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FLHY | QQQ |
|---|---|---|
| Expense Ratio | 0.40% | 0.18%Best |
| AUM | $1.2B | $437.3B |
| Dividend Yield | 6.74% | 0.43% |
| Holdings | 407 | 208 |
| YTD Return | -3.95% | +7.37%Best |
| 1Y Return | -2.96% | +7.77%Best |
| 3Y Return (annualized) | +6.06% | +21.44%Best |
| 5Y Return (annualized) | +2.86% | +11.19%Best |
| Volatility (annualized) | 8.2%Best | 20.5% |
| Max Drawdown | -22.6%Best | -35.1% |
| $10,000 over 5 years | $11,514 | $16,995Best |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Growth |
| Inception | May 30, 2018 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 1, 2018 to Nov 6, 2026 (8.4 years).
FLHY vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 8.4 years both funds cover.
FLHY vs QQQ Performance
Franklin High Yield Corporate ETF (FLHY) is an ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FLHY returned -2.96% while QQQ returned +7.77%. Year to date, FLHY is down 3.95% versus a gain of 7.37% for QQQ.
Over three years, FLHY compounded at +6.06% per year against +21.44% for QQQ; over five years the annualized figures are +2.86% and +11.19% respectively. Across the full 8-year window we track, QQQ has the edge at +17.61% annualized vs +4.72%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.5% compared with 8.2% for FLHY. 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 -22.6% for FLHY and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.68. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FLHY charges 0.40% per year while QQQ charges 0.18%. On a $10,000 position that is $40 vs $18 annually, a gap of $22 per year that compounds over a long holding period. On income, FLHY currently yields 6.74% against 0.43% for QQQ.
Holdings Overlap
At least 13.7% of QQQ's money is in holdings FLHY also owns.
Stated as a floor: for FLHY, our book for it covers 68.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
QQQ and FLHY share little of their money.
8 positions in common, counted across the 63 positions we hold weights for in FLHY and 101 in QQQ, against full books of 407 and 208.
Top Shared Holdings
| Stock | Weight in FLHY | Weight in QQQ | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 0.30% | 6.16% | 5.86% |
| PEPPepsico Inc | 2.40% | 0.74% | 1.66% |
| INTCIntel Corp. | 0.42% | 2.13% | 1.71% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.50% | 1.84% | 1.34% |
| TXNTexas Instrument Inc | 0.79% | 1.08% | 0.29% |
| PANWPalo Alto Networks Inc. | 0.55% | 1.28% | 0.73% |
| HONHoneywell International Inc | 0.43% | 0.28% | 0.15% |
| HONAHoneywell Aerospace Inc | 0.33% | 0.22% | 0.11% |
You are not choosing between two funds in isolation.
Whichever of FLHY and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FLHY or QQQ?
FLHY has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option, by $22 a year on a $10,000 investment.
Which performed better, FLHY or QQQ?
Over the past year FLHY returned -2.96% vs +7.77% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), FLHY annualized +4.72% vs +17.61% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FLHY or QQQ?
QQQ has been the more volatile fund at 20.5% annualized versus 8.2% for FLHY. Worst drawdown: FLHY -22.6% vs QQQ -35.1%.
Should I hold both FLHY and QQQ?
FLHY and QQQ have a monthly-return correlation of 0.68, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FLHY and QQQ?
At least 13.7% of QQQ's money is in holdings FLHY also owns. Our book for FLHY is partial, so the real figure is this or higher. They hold 8 positions in common, counted across the 63 positions we hold weights for in FLHY and 101 in QQQ.
Which pays a higher dividend, FLHY or QQQ?
FLHY yields 6.74% while QQQ yields 0.43%, so FLHY currently pays the higher dividend yield.
Is QQQ better than FLHY?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.