FNILX vs QQQ
Fidelity ZERO Large Cap Index Fund vs Invesco QQQ Trust, Series 1
Which is better, FNILX or QQQ?
QQQ has been ahead.
FNILX has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FNILX is less concentrated, with 35.6% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FNILX | QQQ |
|---|---|---|
| Expense Ratio | 0.00%Best | 0.18% |
| AUM | - | $483.5B |
| Dividend Yield | 0.90% | 0.44% |
| Holdings | 508 | 107 |
| YTD Price Return | +13.05% | +21.43%Best |
| 1Y Price Return | +15.79% | +25.44%Best |
| 3Y Price Return (annualized) | +21.52% | +28.12%Best |
| 5Y Price Return (annualized) | +11.65% | +15.01%Best |
| Volatility (annualized) | 15.2%Best | 20.9% |
| Max Drawdown | -26.6%Best | -35.6% |
| $10,000 over 5 years | $17,350 | $20,122Best |
| Top 10 Weight | 35.6%Best | 46.5% |
| Fund Family | Fidelity Investments (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Sep 13, 2018 | Mar 10, 1999 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for FNILX. Both funds are measured the same way, so the comparison holds. FNILX yields 0.90% and QQQ 0.44% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 27, 2021 to Sep 24, 2026 (5 years).
FNILX vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
FNILX vs QQQ Performance
Fidelity ZERO Large Cap Index Fund (FNILX) is a mutual fund from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FNILX returned +15.79% while QQQ returned +25.44%. Year to date, FNILX is up 13.05% versus a gain of 21.43% for QQQ.
Over three years, FNILX compounded at +21.52% per year against +28.12% for QQQ; over five years the annualized figures are +11.65% and +15.01% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 15.2% for FNILX. 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 -26.6% for FNILX and -35.6% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FNILX charges 0.00% per year while QQQ charges 0.18%. On a $10,000 position that is $0 vs $18 annually, a gap of $18 per year that compounds over a long holding period. On income, FNILX currently yields 0.90% against 0.44% for QQQ.
Structure and taxes
FNILX is a mutual fund and QQQ is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
53.5% of FNILX's money is in holdings QQQ also owns. 95.3% of QQQ's money is in holdings FNILX also owns.
Most of QQQ is already inside FNILX. Owning both mostly buys the same companies twice.
91 positions in common, counted across the 506 positions we hold weights for in FNILX and 102 in QQQ, against full books of 508 and 107.
What only one of them owns
Our book lists 5 positions for QQQ that do not appear in our book for FNILX (2.3% of the fund), and 398 for FNILX that do not appear in QQQ (45.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FNILX | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp | 7.39% | 8.44% | 1.05% |
| AAPLApple, Inc | 6.46% | 7.27% | 0.81% |
| MSFTMicrosoft Corp | 4.21% | 5.76% | 1.55% |
| AMZNAmazon.Com Inc | 3.54% | 4.67% | 1.13% |
| GOOGLAlphabet Inc,class A | 3.16% | 3.36% | 0.20% |
| MUMicron Technology, Inc. | 1.98% | 4.43% | 2.45% |
| AVGOBroadcom Inc | 2.72% | 3.16% | 0.44% |
| GOOGAlphabet Inc | 2.51% | 3.13% | 0.62% |
| AMDAdvanced Micro Devices Inc | 1.44% | 3.45% | 2.01% |
| METAMeta Platforms Inc | 1.87% | 2.78% | 0.91% |
95.3% of QQQ is already inside FNILX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FNILX or QQQ?
FNILX has an expense ratio of 0.00% while QQQ charges 0.18%. FNILX is the cheaper option, by $18 a year on a $10,000 investment.
Which performed better, FNILX or QQQ?
Over the past year FNILX returned +15.79% vs +25.44% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FNILX or QQQ?
QQQ has been the more volatile fund at 20.9% annualized versus 15.2% for FNILX. Worst drawdown: FNILX -26.6% vs QQQ -35.6%.
Should I hold both FNILX and QQQ?
FNILX and QQQ have a monthly-return correlation of 0.87, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FNILX and QQQ?
95.3% of QQQ's money is in holdings FNILX also owns. 95.3% of QQQ's is in holdings FNILX also owns. They hold 91 positions in common, counted across the 506 positions we hold weights for in FNILX and 102 in QQQ.
Which pays a higher dividend, FNILX or QQQ?
FNILX yields 0.90% while QQQ yields 0.44%, so FNILX currently pays the higher dividend yield.
Is it better to hold FNILX or QQQ in a taxable account?
QQQ is an ETF and FNILX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is QQQ better than FNILX?
FNILX has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FNILX is less concentrated, with 35.6% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.