FPFD vs QQQ
Fidelity Preferred Securities & Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FPFD offers more diversification with 333 holdings.
Side-by-Side Comparison
| Metric | FPFD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.59% | 0.18% | |
| AUM | $81M | $496.3B | |
| Dividend Yield | 5.81% | 0.44% | |
| Holdings | 333 | 108 | |
| YTD Return | -3.17% | +17.07% | |
| 1Y Return | -1.52% | +26.39% | |
| 3Y Return (annualized) | +5.83% | +26.08% | |
| 5Y Return (annualized) | +0.62% | +15.18% | |
| Volatility (annualized) | 8.4% | 30.6% | |
| Max Drawdown | -20.8% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jun 15, 2021 | Mar 10, 1999 |
FPFD vs QQQ Performance
Fidelity Preferred Securities & Income ETF (FPFD) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FPFD returned -1.52% while QQQ returned +26.39%. Year to date, FPFD is down 3.17% versus a gain of 17.07% for QQQ.
Over three years, FPFD compounded at +5.83% per year against +26.08% for QQQ; over five years the annualized figures are +0.62% and +15.18% respectively. Across the full 5-year window we track, QQQ has the edge at +13.05% annualized vs +0.88%. 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 8.4% for FPFD. 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 -20.8% for FPFD 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FPFD charges 0.59% per year while QQQ charges 0.18%. On a $10,000 position that is $59 vs $18 annually, a gap of $41 per year that compounds over a long holding period. On income, FPFD currently yields 5.81% against 0.44% for QQQ.
Holdings Overlap
FPFD and QQQ share 0 holdings out of 181 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FPFD or QQQ?
FPFD has an expense ratio of 0.59% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, FPFD or QQQ?
Over the past year FPFD returned -1.52% vs +26.39% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), FPFD annualized +0.88% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, FPFD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.4% for FPFD. Worst drawdown: FPFD -20.8% vs QQQ -83.0%.
Should I hold both FPFD and QQQ?
FPFD and QQQ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FPFD and QQQ?
FPFD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 181 unique securities.
Which pays a higher dividend, FPFD or QQQ?
FPFD yields 5.81% while QQQ yields 0.44%, so FPFD currently pays the higher dividend yield.
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