FLIA vs QQQ
Franklin International Aggregate Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FLIA offers more diversification with 131 holdings.
Side-by-Side Comparison
| Metric | FLIA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $766M | $496.3B | |
| Dividend Yield | 2.80% | 0.44% | |
| Holdings | 131 | 108 | |
| YTD Return | +0.57% | +16.64% | |
| 1Y Return | -0.39% | +27.27% | |
| 3Y Return (annualized) | +2.80% | +25.96% | |
| 5Y Return (annualized) | +0.12% | +14.54% | |
| Volatility (annualized) | 3.9% | 30.6% | |
| Max Drawdown | -11.3% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 30, 2018 | Mar 10, 1999 |
FLIA vs QQQ Performance
Franklin International Aggregate Bond ETF (FLIA) 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 FLIA returned -0.39% while QQQ returned +27.27%. Year to date, FLIA is up 0.57% versus a gain of 16.64% for QQQ.
Over three years, FLIA compounded at +2.80% per year against +25.96% for QQQ; over five years the annualized figures are +0.12% and +14.54% respectively. Across the full 8-year window we track, QQQ has the edge at +13.03% annualized vs +0.73%. 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 3.9% for FLIA. 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 -11.3% for FLIA 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
FLIA charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, FLIA currently yields 2.80% against 0.44% for QQQ.
Holdings Overlap
FLIA and QQQ share 0 holdings out of 106 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, FLIA or QQQ?
FLIA has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, FLIA or QQQ?
Over the past year FLIA returned -0.39% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), FLIA annualized +0.73% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, FLIA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.9% for FLIA. Worst drawdown: FLIA -11.3% vs QQQ -83.0%.
Should I hold both FLIA and QQQ?
FLIA 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 FLIA and QQQ?
FLIA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, FLIA or QQQ?
FLIA yields 2.80% while QQQ yields 0.44%, so FLIA currently pays the higher dividend yield.
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