FNDA vs QQQ
Schwab Fundamental US Small Company ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FNDA offers more diversification with 921 holdings.
Side-by-Side Comparison
| Metric | FNDA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $9.4B | $496.3B | |
| Dividend Yield | 1.12% | 0.44% | |
| Holdings | 921 | 108 | |
| YTD Return | +19.11% | +16.64% | |
| 1Y Return | +27.12% | +27.27% | |
| 3Y Return (annualized) | +16.37% | +25.96% | |
| 5Y Return (annualized) | +8.92% | +14.54% | |
| Volatility (annualized) | 19.5% | 30.6% | |
| Max Drawdown | -45.9% | -83.0% | |
| Fund Family | Charles Schwab Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 15, 2013 | Mar 10, 1999 |
FNDA vs QQQ Performance
Schwab Fundamental US Small Company ETF (FNDA) is a ETF from Charles Schwab Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FNDA returned +27.12% while QQQ returned +27.27%. Year to date, FNDA is up 19.11% versus a gain of 16.64% for QQQ.
Over three years, FNDA compounded at +16.37% per year against +25.96% for QQQ; over five years the annualized figures are +8.92% and +14.54% respectively. Across the full 13-year window we track, QQQ has the edge at +13.03% annualized vs +9.62%. 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 19.5% for FNDA. 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 -45.9% for FNDA 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FNDA charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, FNDA currently yields 1.12% against 0.44% for QQQ.
Holdings Overlap
FNDA and QQQ share 12 holdings out of 1004 unique holdings combined, representing a 1.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FNDA or QQQ?
FNDA has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, FNDA or QQQ?
Over the past year FNDA returned +27.12% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), FNDA annualized +9.62% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, FNDA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.5% for FNDA. Worst drawdown: FNDA -45.9% vs QQQ -83.0%.
Should I hold both FNDA and QQQ?
FNDA and QQQ have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FNDA and QQQ?
FNDA and QQQ share 12 common holdings with a 1.4% weight overlap. Combined, they hold 1004 unique securities.
Which pays a higher dividend, FNDA or QQQ?
FNDA yields 1.12% while QQQ yields 0.44%, so FNDA currently pays the higher dividend yield.
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