FMTM vs QQQ

Quick Verdict

QQQ has a lower expense ratio. FMTM delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: FMTMMore Diversified: QQQ

Side-by-Side Comparison

MetricFMTMQQQWinner
Expense Ratio0.45%0.18%
AUM$243M$455.8B
Dividend Yield0.22%0.41%
Holdings32108
YTD Return+19.79%+18.31%
1Y Return+44.36%+25.37%
3Y Return (annualized)-+25.79%
5Y Return (annualized)-+15.20%
Volatility (annualized)20.7%30.6%
Max Drawdown-15.4%-83.0%
Fund FamilyMarketDesk IndicesInvesco (US)
CategoryEquityEquity
InceptionMar 20, 2025Mar 10, 1999

FMTM vs QQQ Performance

MarketDesk Focused US Momentum ETF (FMTM) is a ETF from MarketDesk Indices and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FMTM returned +44.36% while QQQ returned +25.37%. Year to date, FMTM is up 19.79% versus a gain of 18.31% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 20.7% for FMTM. 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 -15.4% for FMTM 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FMTM charges 0.45% per year while QQQ charges 0.18%. On a $10,000 position that is $45 vs $18 annually, a gap of $27 per year that compounds over a long holding period. On income, FMTM currently yields 0.22% against 0.41% for QQQ.

Holdings Overlap

2.3%overlap

FMTM and QQQ share 2 holdings out of 132 unique holdings combined, representing a 2.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FMTMWeight in QQQDifference
CSCO4.33%2.08%2.25%
ODFL2.92%0.21%2.71%

Frequently Asked Questions

Which is cheaper, FMTM or QQQ?

FMTM has an expense ratio of 0.45% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $27 per year of difference.

Which performed better, FMTM or QQQ?

Over the past year FMTM returned +44.36% vs +25.37% for QQQ, so FMTM leads on 1-year performance. Over the longest common window we track (1 years), FMTM annualized +38.57% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, FMTM or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 20.7% for FMTM. Worst drawdown: FMTM -15.4% vs QQQ -83.0%.

Should I hold both FMTM and QQQ?

FMTM and QQQ have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FMTM and QQQ?

FMTM and QQQ share 2 common holdings with a 2.3% weight overlap. Combined, they hold 132 unique securities.

Which pays a higher dividend, FMTM or QQQ?

FMTM yields 0.22% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.

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