FMUN vs QQQ
Fidelity Systematic Municipal Bond Index ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
FMUN has a lower expense ratio. QQQ delivered stronger 1-year returns. FMUN offers more diversification with 1,105 holdings.
Side-by-Side Comparison
| Metric | FMUN | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.18% | |
| AUM | $180M | $496.3B | |
| Dividend Yield | 3.63% | 0.44% | |
| Holdings | 1,105 | 108 | |
| YTD Return | +0.53% | +16.23% | |
| 1Y Return | +5.21% | +26.23% | |
| 3Y Return (annualized) | - | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 4.3% | 30.6% | |
| Max Drawdown | -3.2% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 7, 2025 | Mar 10, 1999 |
FMUN vs QQQ Performance
Fidelity Systematic Municipal Bond Index ETF (FMUN) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FMUN returned +5.21% while QQQ returned +26.23%. Year to date, FMUN is up 0.53% versus a gain of 16.23% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 4.3% for FMUN. 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 -3.2% for FMUN 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMUN charges 0.05% per year while QQQ charges 0.18%. On a $10,000 position that is $5 vs $18 annually, a gap of $13 per year that compounds over a long holding period. On income, FMUN currently yields 3.63% against 0.44% for QQQ.
Holdings Overlap
FMUN and QQQ share 0 holdings out of 103 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FMUN or QQQ?
FMUN has an expense ratio of 0.05% while QQQ charges 0.18%. FMUN is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, FMUN or QQQ?
Over the past year FMUN returned +5.21% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), FMUN annualized +3.91% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FMUN or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.3% for FMUN. Worst drawdown: FMUN -3.2% vs QQQ -83.0%.
Should I hold both FMUN and QQQ?
FMUN and QQQ have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMUN and QQQ?
FMUN and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, FMUN or QQQ?
FMUN yields 3.63% while QQQ yields 0.44%, so FMUN currently pays the higher dividend yield.
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