FMCX vs QQQ
FM Focus Equity 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 | FMCX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.18% | |
| AUM | $122M | $496.3B | |
| Dividend Yield | 0.29% | 0.44% | |
| Holdings | 32 | 108 | |
| YTD Return | +7.22% | +17.07% | |
| 1Y Return | +9.86% | +26.39% | |
| 3Y Return (annualized) | +15.31% | +26.08% | |
| 5Y Return (annualized) | - | +15.18% | |
| Volatility (annualized) | 15.7% | 30.6% | |
| Max Drawdown | -18.5% | -83.0% | |
| Fund Family | First Manhattan | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 22, 2022 | Mar 10, 1999 |
FMCX vs QQQ Performance
FM Focus Equity ETF (FMCX) is a ETF from First Manhattan and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FMCX returned +9.86% while QQQ returned +26.39%. Year to date, FMCX is up 7.22% versus a gain of 17.07% for QQQ.
Over three years, FMCX compounded at +15.31% per year against +26.08% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.05% annualized vs +10.09%. 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 15.7% for FMCX. 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 -18.5% for FMCX 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FMCX charges 0.72% per year while QQQ charges 0.18%. On a $10,000 position that is $72 vs $18 annually, a gap of $54 per year that compounds over a long holding period. On income, FMCX currently yields 0.29% against 0.44% for QQQ.
Holdings Overlap
FMCX and QQQ share 15 holdings out of 119 unique holdings combined, representing a 26.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FMCX or QQQ?
FMCX has an expense ratio of 0.72% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, FMCX or QQQ?
Over the past year FMCX returned +9.86% vs +26.39% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), FMCX annualized +10.09% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, FMCX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.7% for FMCX. Worst drawdown: FMCX -18.5% vs QQQ -83.0%.
Should I hold both FMCX and QQQ?
FMCX and QQQ have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMCX and QQQ?
FMCX and QQQ share 15 common holdings with a 26.9% weight overlap. Combined, they hold 119 unique securities.
Which pays a higher dividend, FMCX or QQQ?
FMCX yields 0.29% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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