FLQL vs QQQ
Franklin US Large Cap Multifactor Index ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
FLQL has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | FLQL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $2.0B | $455.8B | |
| Dividend Yield | 1.05% | 0.41% | |
| Holdings | 220 | 108 | |
| YTD Return | +13.42% | +17.46% | |
| 1Y Return | +20.99% | +26.02% | |
| 3Y Return (annualized) | +21.95% | +25.51% | |
| 5Y Return (annualized) | +13.73% | +15.12% | |
| Volatility (annualized) | 15.1% | 30.6% | |
| Max Drawdown | -33.6% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 26, 2017 | Mar 10, 1999 |
FLQL vs QQQ Performance
Franklin US Large Cap Multifactor Index ETF (FLQL) 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 FLQL returned +20.99% while QQQ returned +26.02%. Year to date, FLQL is up 13.42% versus a gain of 17.46% for QQQ.
Over three years, FLQL compounded at +21.95% per year against +25.51% for QQQ; over five years the annualized figures are +13.73% and +15.12% respectively. Across the full 9-year window we track, FLQL has the edge at +14.78% annualized vs +13.08%. 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 15.1% for FLQL. 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 -33.6% for FLQL 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FLQL 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, FLQL currently yields 1.05% against 0.41% for QQQ.
Holdings Overlap
FLQL and QQQ share 7 holdings out of 112 unique holdings combined, representing a 15.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FLQL or QQQ?
FLQL has an expense ratio of 0.15% while QQQ charges 0.18%. FLQL is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, FLQL or QQQ?
Over the past year FLQL returned +20.99% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), FLQL annualized +14.78% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, FLQL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.1% for FLQL. Worst drawdown: FLQL -33.6% vs QQQ -83.0%.
Should I hold both FLQL and QQQ?
FLQL and QQQ have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLQL and QQQ?
FLQL and QQQ share 7 common holdings with a 15.3% weight overlap. Combined, they hold 112 unique securities.
Which pays a higher dividend, FLQL or QQQ?
FLQL yields 1.05% while QQQ yields 0.41%, so FLQL currently pays the higher dividend yield.
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