FNDC vs QQQ
Schwab Fundamental International Small Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FNDC offers more diversification with 1332 holdings.
Side-by-Side Comparison
| Metric | FNDC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.18% | |
| AUM | $3.0B | $455.8B | |
| Dividend Yield | 3.72% | 0.41% | |
| Holdings | 1,611 | 108 | |
| YTD Return | +14.20% | +18.31% | |
| 1Y Return | +21.68% | +25.37% | |
| 3Y Return (annualized) | +18.81% | +25.79% | |
| 5Y Return (annualized) | +8.36% | +15.20% | |
| Volatility (annualized) | 15.5% | 30.6% | |
| Max Drawdown | -46.2% | -83.0% | |
| Fund Family | Charles Schwab Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 15, 2013 | Mar 10, 1999 |
FNDC vs QQQ Performance
Schwab Fundamental International Small Equity ETF (FNDC) 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 FNDC returned +21.68% while QQQ returned +25.37%. Year to date, FNDC is up 14.20% versus a gain of 18.31% for QQQ.
Over three years, FNDC compounded at +18.81% per year against +25.79% for QQQ; over five years the annualized figures are +8.36% and +15.20% respectively. Across the full 13-year window we track, QQQ has the edge at +13.10% annualized vs +6.93%. 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 15.5% for FNDC. 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 -46.2% for FNDC 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FNDC 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, FNDC currently yields 3.72% against 0.41% for QQQ.
Holdings Overlap
FNDC and QQQ share 2 holdings out of 1433 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FNDC or QQQ?
FNDC 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, FNDC or QQQ?
Over the past year FNDC returned +21.68% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), FNDC annualized +6.93% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, FNDC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.5% for FNDC. Worst drawdown: FNDC -46.2% vs QQQ -83.0%.
Should I hold both FNDC and QQQ?
FNDC and QQQ have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FNDC and QQQ?
FNDC and QQQ share 2 common holdings with a 0.1% weight overlap. Combined, they hold 1433 unique securities.
Which pays a higher dividend, FNDC or QQQ?
FNDC yields 3.72% while QQQ yields 0.41%, so FNDC currently pays the higher dividend yield.
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