FMET vs QQQ
Fidelity Metaverse 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 | FMET | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.18% | |
| AUM | $44M | $496.3B | |
| Dividend Yield | 0.51% | 0.44% | |
| Holdings | 64 | 108 | |
| YTD Return | +8.80% | +19.52% | |
| 1Y Return | +10.85% | +26.68% | |
| 3Y Return (annualized) | +17.30% | +26.64% | |
| 5Y Return (annualized) | - | +15.36% | |
| Volatility (annualized) | 22.2% | 30.6% | |
| Max Drawdown | -29.2% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 19, 2022 | Mar 10, 1999 |
FMET vs QQQ Performance
Fidelity Metaverse ETF (FMET) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FMET returned +10.85% while QQQ returned +26.68%. Year to date, FMET is up 8.80% versus a gain of 19.52% for QQQ.
Over three years, FMET compounded at +17.30% per year against +26.64% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.14% annualized vs +12.50%. 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 22.2% for FMET. 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 -29.2% for FMET 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FMET charges 0.39% per year while QQQ charges 0.18%. On a $10,000 position that is $39 vs $18 annually, a gap of $21 per year that compounds over a long holding period. On income, FMET currently yields 0.51% against 0.44% for QQQ.
Holdings Overlap
FMET and QQQ share 11 holdings out of 140 unique holdings combined, representing a 24.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FMET or QQQ?
FMET has an expense ratio of 0.39% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, FMET or QQQ?
Over the past year FMET returned +10.85% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), FMET annualized +12.50% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, FMET or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 22.2% for FMET. Worst drawdown: FMET -29.2% vs QQQ -83.0%.
Should I hold both FMET and QQQ?
FMET and QQQ have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMET and QQQ?
FMET and QQQ share 11 common holdings with a 24.7% weight overlap. Combined, they hold 140 unique securities.
Which pays a higher dividend, FMET or QQQ?
FMET yields 0.51% while QQQ yields 0.44%, so FMET currently pays the higher dividend yield.
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