FMAG vs QQQ
Fidelity Magellan ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | FMAG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.57% | 0.18% | |
| AUM | $246M | $496.3B | |
| Dividend Yield | 0.08% | 0.44% | |
| Holdings | 52 | 108 | |
| YTD Return | +5.60% | +16.64% | |
| 1Y Return | +4.56% | +27.27% | |
| 3Y Return (annualized) | +18.70% | +25.96% | |
| 5Y Return (annualized) | +8.98% | +14.54% | |
| Volatility (annualized) | 18.1% | 30.6% | |
| Max Drawdown | -32.9% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 2, 2021 | Mar 10, 1999 |
FMAG vs QQQ Performance
Fidelity Magellan ETF (FMAG) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FMAG returned +4.56% while QQQ returned +27.27%. Year to date, FMAG is up 5.60% versus a gain of 16.64% for QQQ.
Over three years, FMAG compounded at +18.70% per year against +25.96% for QQQ; over five years the annualized figures are +8.98% and +14.54% respectively. Across the full 6-year window we track, QQQ has the edge at +13.03% annualized vs +11.25%. 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 18.1% for FMAG. 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 -32.9% for FMAG 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FMAG charges 0.57% per year while QQQ charges 0.18%. On a $10,000 position that is $57 vs $18 annually, a gap of $39 per year that compounds over a long holding period. On income, FMAG currently yields 0.08% against 0.44% for QQQ.
Holdings Overlap
FMAG and QQQ share 22 holdings out of 131 unique holdings combined, representing a 44.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FMAG or QQQ?
FMAG has an expense ratio of 0.57% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $39 per year of difference.
Which performed better, FMAG or QQQ?
Over the past year FMAG returned +4.56% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), FMAG annualized +11.25% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, FMAG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.1% for FMAG. Worst drawdown: FMAG -32.9% vs QQQ -83.0%.
Should I hold both FMAG and QQQ?
FMAG and QQQ have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FMAG and QQQ?
FMAG and QQQ share 22 common holdings with a 44.0% weight overlap. Combined, they hold 131 unique securities.
Which pays a higher dividend, FMAG or QQQ?
FMAG yields 0.08% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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