FMED vs QQQ
Fidelity Disruptive Medicine ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FMED delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | FMED | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $45M | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 77 | 108 | |
| YTD Return | +19.43% | +16.23% | |
| 1Y Return | +32.32% | +26.23% | |
| 3Y Return (annualized) | +11.59% | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 19.9% | 30.6% | |
| Max Drawdown | -21.8% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 13, 2023 | Mar 10, 1999 |
FMED vs QQQ Performance
Fidelity Disruptive Medicine ETF (FMED) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FMED returned +32.32% while QQQ returned +26.23%. Year to date, FMED is up 19.43% versus a gain of 16.23% for QQQ.
Over three years, FMED compounded at +11.59% per year against +25.75% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.02% annualized vs +8.10%. 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 19.9% for FMED. 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 -21.8% for FMED 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMED charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, FMED currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
FMED and QQQ share 3 holdings out of 171 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FMED or QQQ?
FMED has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, FMED or QQQ?
Over the past year FMED returned +32.32% vs +26.23% for QQQ, so FMED leads on 1-year performance. Over the longest common window we track (3 years), FMED annualized +8.10% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FMED or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.9% for FMED. Worst drawdown: FMED -21.8% vs QQQ -83.0%.
Should I hold both FMED and QQQ?
FMED and QQQ have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMED and QQQ?
FMED and QQQ share 3 common holdings with a 0.8% weight overlap. Combined, they hold 171 unique securities.
Which pays a higher dividend, FMED or QQQ?
FMED yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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