FLQS vs QQQ
Franklin US Small Cap Multifactor Index ETF vs Invesco QQQ Trust, Series 1
Which is better, FLQS or QQQ?
Small Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FLQS is less concentrated, with 9.3% 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 | FLQS | QQQ |
|---|---|---|
| Expense Ratio | 0.35% | 0.18%Best |
| AUM | $46M | $483.5B |
| Dividend Yield | 1.32% | 0.44% |
| Holdings | 499 | 107 |
| YTD Return | +12.64% | +17.11%Best |
| 1Y Return | +11.10% | +23.99%Best |
| 3Y Return (annualized) | +12.63% | +24.62%Best |
| 5Y Return (annualized) | +5.95% | +14.23%Best |
| Volatility (annualized) | 18.6%Best | 19.5% |
| Max Drawdown | -42.2% | -35.1%Best |
| $10,000 over 5 years | $13,351 | $19,449Best |
| Top 10 Weight | 9.3%Best | 46.5% |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Small 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 9, 2026 (9.4 years).
FLQS 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.
FLQS vs QQQ Performance
Franklin US Small Cap Multifactor Index ETF (FLQS) 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 FLQS returned +11.10% while QQQ returned +23.99%. Year to date, FLQS is up 12.64% versus a gain of 17.11% for QQQ.
Over three years, FLQS compounded at +12.63% per year against +24.62% for QQQ; over five years the annualized figures are +5.95% and +14.23% respectively. Across the full 9-year window we track, QQQ has the edge at +19.82% annualized vs +8.50%.
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 18.6% for FLQS. 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 -42.2% for FLQS 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 0.69. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FLQS charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, FLQS currently yields 1.32% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 491 holdings in FLQS and 102 in QQQ, totalling 99.3% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 491 positions we hold weights for in FLQS and 102 in QQQ, against full books of 499 and 107.
What only one of them owns
Our book lists 95 positions for QQQ that do not appear in our book for FLQS (97.0% of the fund), and 469 for FLQS that do not appear in QQQ (94.4%).
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.
You are not choosing between two funds in isolation.
Whichever of FLQS 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, FLQS or QQQ?
FLQS has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, FLQS or QQQ?
Over the past year FLQS returned +11.10% vs +23.99% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), FLQS annualized +8.50% vs +19.82% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FLQS or QQQ?
QQQ has been the more volatile fund at 19.5% annualized versus 18.6% for FLQS. Worst drawdown: FLQS -42.2% vs QQQ -35.1%.
Should I hold both FLQS and QQQ?
FLQS and QQQ have a monthly-return correlation of 0.69, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FLQS or QQQ?
FLQS yields 1.32% while QQQ yields 0.44%, so FLQS currently pays the higher dividend yield.
Is QQQ better than FLQS?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FLQS is less concentrated, with 9.3% 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.