FLUD vs QQQ
Franklin Ultra Short Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
FLUD has a lower expense ratio. QQQ delivered stronger 1-year returns. FLUD offers more diversification with 298 holdings.
Side-by-Side Comparison
| Metric | FLUD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $561M | $455.8B | |
| Dividend Yield | 4.42% | 0.41% | |
| Holdings | 443 | 108 | |
| YTD Return | +1.64% | +18.31% | |
| 1Y Return | +3.75% | +25.37% | |
| 3Y Return (annualized) | +5.08% | +25.79% | |
| 5Y Return (annualized) | +3.67% | +15.20% | |
| Volatility (annualized) | 0.9% | 30.6% | |
| Max Drawdown | -1.7% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 14, 2020 | Mar 10, 1999 |
FLUD vs QQQ Performance
Franklin Ultra Short Bond ETF (FLUD) 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 FLUD returned +3.75% while QQQ returned +25.37%. Year to date, FLUD is up 1.64% versus a gain of 18.31% for QQQ.
Over three years, FLUD compounded at +5.08% per year against +25.79% for QQQ; over five years the annualized figures are +3.67% and +15.20% respectively. Across the full 6-year window we track, QQQ has the edge at +13.10% annualized vs +3.00%. 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 0.9% for FLUD. 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 -1.7% for FLUD 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLUD 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, FLUD currently yields 4.42% against 0.41% for QQQ.
Holdings Overlap
FLUD and QQQ share 0 holdings out of 401 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, FLUD or QQQ?
FLUD has an expense ratio of 0.15% while QQQ charges 0.18%. FLUD is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, FLUD or QQQ?
Over the past year FLUD returned +3.75% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), FLUD annualized +3.00% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, FLUD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 0.9% for FLUD. Worst drawdown: FLUD -1.7% vs QQQ -83.0%.
Should I hold both FLUD and QQQ?
FLUD and QQQ have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLUD and QQQ?
FLUD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 401 unique securities.
Which pays a higher dividend, FLUD or QQQ?
FLUD yields 4.42% while QQQ yields 0.41%, so FLUD currently pays the higher dividend yield.
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