FMDE vs QQQ
Fidelity Enhanced Mid Cap Core ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FMDE offers more diversification with 430 holdings.
Side-by-Side Comparison
| Metric | FMDE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.23% | 0.18% | |
| AUM | $7.8B | $496.3B | |
| Dividend Yield | 1.07% | 0.44% | |
| Holdings | 430 | 108 | |
| YTD Return | +16.07% | +15.47% | |
| 1Y Return | +19.91% | +24.44% | |
| 3Y Return (annualized) | - | +25.47% | |
| 5Y Return (annualized) | - | +14.22% | |
| Volatility (annualized) | 13.3% | 30.6% | |
| Max Drawdown | -21.1% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 20, 2023 | Mar 10, 1999 |
FMDE vs QQQ Performance
Fidelity Enhanced Mid Cap Core ETF (FMDE) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FMDE returned +19.91% while QQQ returned +24.44%. Year to date, FMDE is up 16.07% versus a gain of 15.47% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 13.3% for FMDE. 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 -21.1% for FMDE 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMDE charges 0.23% per year while QQQ charges 0.18%. On a $10,000 position that is $23 vs $18 annually, a gap of $5 per year that compounds over a long holding period. On income, FMDE currently yields 1.07% against 0.44% for QQQ.
Holdings Overlap
FMDE and QQQ share 24 holdings out of 496 unique holdings combined, representing a 5.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FMDE or QQQ?
FMDE has an expense ratio of 0.23% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, FMDE or QQQ?
Over the past year FMDE returned +19.91% vs +24.44% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), FMDE annualized +22.19% vs +12.99% for QQQ. Past performance does not guarantee future results.
Which is riskier, FMDE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.3% for FMDE. Worst drawdown: FMDE -21.1% vs QQQ -83.0%.
Should I hold both FMDE and QQQ?
FMDE and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMDE and QQQ?
FMDE and QQQ share 24 common holdings with a 5.1% weight overlap. Combined, they hold 496 unique securities.
Which pays a higher dividend, FMDE or QQQ?
FMDE yields 1.07% while QQQ yields 0.44%, so FMDE currently pays the higher dividend yield.
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