FNCMX vs QQQ
Fidelity NASDAQ Composite Index vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FNCMX offers more diversification with 2826 holdings.
Side-by-Side Comparison
| Metric | FNCMX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.18% | |
| AUM | - | $455.8B | |
| Dividend Yield | 0.45% | 0.41% | |
| Holdings | 2,946 | 108 | |
| YTD Return | +14.87% | +17.46% | |
| 1Y Return | +24.49% | +26.02% | |
| 3Y Return (annualized) | +25.16% | +25.51% | |
| 5Y Return (annualized) | +12.68% | +15.12% | |
| Volatility (annualized) | 20.1% | 30.6% | |
| Max Drawdown | -36.8% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 25, 2003 | Mar 10, 1999 |
FNCMX vs QQQ Performance
Fidelity NASDAQ Composite Index (FNCMX) is a mutual fund from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FNCMX returned +24.49% while QQQ returned +26.02%. Year to date, FNCMX is up 14.87% versus a gain of 17.46% for QQQ.
Over three years, FNCMX compounded at +25.16% per year against +25.51% for QQQ; over five years the annualized figures are +12.68% and +15.12% respectively. Across the full 5-year window we track, QQQ has the edge at +13.08% annualized vs +12.68%. 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 20.1% for FNCMX. 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 -36.8% for FNCMX 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FNCMX charges 0.29% per year while QQQ charges 0.18%. On a $10,000 position that is $29 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, FNCMX currently yields 0.45% against 0.41% for QQQ.
Holdings Overlap
FNCMX and QQQ share 100 holdings out of 2829 unique holdings combined, representing a 64.7% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, FNCMX or QQQ?
FNCMX has an expense ratio of 0.29% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, FNCMX or QQQ?
Over the past year FNCMX returned +24.49% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), FNCMX annualized +12.68% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, FNCMX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.1% for FNCMX. Worst drawdown: FNCMX -36.8% vs QQQ -83.0%.
Should I hold both FNCMX and QQQ?
FNCMX and QQQ have a monthly-return correlation of 0.98, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FNCMX and QQQ?
FNCMX and QQQ share 100 common holdings with a 64.7% weight overlap. Combined, they hold 2829 unique securities.
Which pays a higher dividend, FNCMX or QQQ?
FNCMX yields 0.45% while QQQ yields 0.41%, so FNCMX currently pays the higher dividend yield.
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