FLSP vs QQQ
Franklin Systematic Style Premia ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FLSP offers more diversification with 482 holdings.
Side-by-Side Comparison
| Metric | FLSP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.18% | |
| AUM | $1.0B | $455.8B | |
| Dividend Yield | 2.61% | 0.41% | |
| Holdings | 598 | 108 | |
| YTD Return | +5.36% | +17.46% | |
| 1Y Return | +15.40% | +26.02% | |
| 3Y Return (annualized) | +10.22% | +25.51% | |
| 5Y Return (annualized) | +7.95% | +15.12% | |
| Volatility (annualized) | 8.1% | 30.6% | |
| Max Drawdown | -22.8% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 18, 2019 | Mar 10, 1999 |
FLSP vs QQQ Performance
Franklin Systematic Style Premia ETF (FLSP) 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 FLSP returned +15.40% while QQQ returned +26.02%. Year to date, FLSP is up 5.36% versus a gain of 17.46% for QQQ.
Over three years, FLSP compounded at +10.22% per year against +25.51% for QQQ; over five years the annualized figures are +7.95% and +15.12% respectively. Across the full 7-year window we track, QQQ has the edge at +13.08% annualized vs +4.53%. 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 8.1% for FLSP. 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 -22.8% for FLSP 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 -0.02. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLSP charges 0.65% per year while QQQ charges 0.18%. On a $10,000 position that is $65 vs $18 annually, a gap of $47 per year that compounds over a long holding period. On income, FLSP currently yields 2.61% against 0.41% for QQQ.
Holdings Overlap
FLSP and QQQ share 55 holdings out of 530 unique holdings combined, representing a 14.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FLSP or QQQ?
FLSP has an expense ratio of 0.65% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, FLSP or QQQ?
Over the past year FLSP returned +15.40% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), FLSP annualized +4.53% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, FLSP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.1% for FLSP. Worst drawdown: FLSP -22.8% vs QQQ -83.0%.
Should I hold both FLSP and QQQ?
FLSP and QQQ have a monthly-return correlation of -0.02, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLSP and QQQ?
FLSP and QQQ share 55 common holdings with a 14.1% weight overlap. Combined, they hold 530 unique securities.
Which pays a higher dividend, FLSP or QQQ?
FLSP yields 2.61% while QQQ yields 0.41%, so FLSP currently pays the higher dividend yield.
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