FNILX vs QQQ
Fidelity ZERO Large Cap Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
FNILX has a lower expense ratio. QQQ delivered stronger 1-year returns. FNILX offers more diversification with 512 holdings.
Side-by-Side Comparison
| Metric | FNILX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.00% | 0.18% | |
| AUM | - | $496.3B | |
| Dividend Yield | 0.92% | 0.44% | |
| Holdings | 512 | 108 | |
| YTD Return | +12.15% | +16.19% | |
| 1Y Return | +18.65% | +25.22% | |
| 3Y Return (annualized) | +20.65% | +25.47% | |
| 5Y Return (annualized) | +11.33% | +14.34% | |
| Volatility (annualized) | 15.4% | 30.6% | |
| Max Drawdown | -26.6% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 13, 2018 | Mar 10, 1999 |
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 a ETF from Invesco (US). Over the past year FNILX returned +18.65% while QQQ returned +25.22%. Year to date, FNILX is up 12.15% versus a gain of 16.19% for QQQ.
Over three years, FNILX compounded at +20.65% per year against +25.47% for QQQ; over five years the annualized figures are +11.33% and +14.34% respectively. Across the full 5-year window we track, QQQ has the edge at +13.01% annualized vs +11.33%. 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 15.4% 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 -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 0.88. 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 0.92% against 0.44% for QQQ.
Holdings Overlap
FNILX and QQQ share 86 holdings out of 527 unique holdings combined, representing a 50.3% weight overlap.
High overlap means holding both may not provide much additional diversification.
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. On a $10,000 investment, that is $18 per year of difference.
Which performed better, FNILX or QQQ?
Over the past year FNILX returned +18.65% vs +25.22% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), FNILX annualized +11.33% vs +13.01% for QQQ. Past performance does not guarantee future results.
Which is riskier, FNILX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.4% for FNILX. Worst drawdown: FNILX -26.6% vs QQQ -83.0%.
Should I hold both FNILX and QQQ?
FNILX and QQQ have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FNILX and QQQ?
FNILX and QQQ share 86 common holdings with a 50.3% weight overlap. Combined, they hold 527 unique securities.
Which pays a higher dividend, FNILX or QQQ?
FNILX yields 0.92% while QQQ yields 0.44%, so FNILX currently pays the higher dividend yield.
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