FLQM vs QQQ
Franklin US Mid Cap Multifactor Index ETF vs Invesco QQQ Trust, Series 1
Which is better, FLQM or QQQ?
Mid Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FLQM is less concentrated, with 11.3% of the fund in its ten largest positions against 46.5%.
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 | FLQM | QQQ |
|---|---|---|
| Expense Ratio | 0.30% | 0.18%Best |
| AUM | $1.6B | $486.1B |
| Dividend Yield | 1.64% | 0.44% |
| Holdings | 207 | 107 |
| YTD Return | +7.54% | +17.54%Best |
| 1Y Return | +6.74% | +25.59%Best |
| 3Y Return (annualized) | +11.91% | +24.63%Best |
| 5Y Return (annualized) | +6.89% | +14.18%Best |
| Volatility (annualized) | 16.7%Best | 19.5% |
| Max Drawdown | -37.3% | -35.1%Best |
| $10,000 over 5 years | $13,954 | $19,407Best |
| Top 10 Weight | 11.3%Best | 46.5% |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Growth |
| Inception | Apr 26, 2017 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Apr 28, 2017 to Sep 4, 2026 (9.4 years).
FLQM 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 9.4 years both funds cover.
FLQM vs QQQ Performance
Franklin US Mid Cap Multifactor Index ETF (FLQM) 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 FLQM returned +6.74% while QQQ returned +25.59%. Year to date, FLQM is up 7.54% versus a gain of 17.54% for QQQ.
Over three years, FLQM compounded at +11.91% per year against +24.63% for QQQ; over five years the annualized figures are +6.89% and +14.18% respectively. Across the full 9-year window we track, QQQ has the edge at +19.90% annualized vs +11.06%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.5% compared with 16.7% for FLQM. 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 -37.3% for FLQM 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FLQM charges 0.30% per year while QQQ charges 0.18%. On a $10,000 position that is $30 vs $18 annually, a gap of $12 per year that compounds over a long holding period. On income, FLQM currently yields 1.64% against 0.44% for QQQ.
Holdings Overlap
6.5% of FLQM's money is in holdings QQQ also owns. 1.5% of QQQ's money is in holdings FLQM also owns.
FLQM and QQQ share little of their money.
7 positions in common, counted across the 205 positions we hold weights for in FLQM and 102 in QQQ, against full books of 207 and 107.
What only one of them owns
Our book lists 89 positions for QQQ that do not appear in our book for FLQM (96.1% of the fund), and 191 for FLQM that do not appear in QQQ (89.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
You are not choosing between two funds in isolation.
Whichever of FLQM 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, FLQM or QQQ?
FLQM has an expense ratio of 0.30% while QQQ charges 0.18%. QQQ is the cheaper option, by $12 a year on a $10,000 investment.
Which performed better, FLQM or QQQ?
Over the past year FLQM returned +6.74% vs +25.59% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), FLQM annualized +11.06% vs +19.90% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FLQM or QQQ?
QQQ has been the more volatile fund at 19.5% annualized versus 16.7% for FLQM. Worst drawdown: FLQM -37.3% vs QQQ -35.1%.
Should I hold both FLQM and QQQ?
FLQM and QQQ have a monthly-return correlation of 0.72, 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 FLQM and QQQ?
6.5% of FLQM's money is in holdings QQQ also owns. 1.5% of QQQ's is in holdings FLQM also owns. They hold 7 positions in common, counted across the 205 positions we hold weights for in FLQM and 102 in QQQ.
Which pays a higher dividend, FLQM or QQQ?
FLQM yields 1.64% while QQQ yields 0.44%, so FLQM currently pays the higher dividend yield.
Is QQQ better than FLQM?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FLQM is less concentrated, with 11.3% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.