FQAL vs HCOM

Quick Verdict

FQAL has a lower expense ratio. FQAL delivered stronger 1-year returns. FQAL offers more diversification with 125 holdings.

Lower Fees: FQALHigher Returns: FQALMore Diversified: FQAL

Side-by-Side Comparison

MetricFQALHCOMWinner
Expense Ratio0.15%0.59%
AUM$1.4B$9M
Dividend Yield1.17%10.95%
Holdings12955
YTD Return+13.20%+0.71%
1Y Return+20.81%-4.90%
3Y Return (annualized)+19.86%-6.95%
5Y Return (annualized)+12.09%-
Volatility (annualized)15.0%14.7%
Max Drawdown-34.1%-28.8%
Fund FamilyFidelity Investments (US)Hartford Funds
CategoryEquityCommodity
InceptionSep 12, 2016Sep 14, 2021

FQAL vs HCOM Performance

Fidelity Quality Factor ETF (FQAL) is a ETF from Fidelity Investments (US) and Hartford Schroders Commodity Strategy ETF (HCOM) is a ETF from Hartford Funds. Over the past year FQAL returned +20.81% while HCOM returned -4.90%. Year to date, FQAL is up 13.20% versus a gain of 0.71% for HCOM.

Over three years, FQAL compounded at +19.86% per year against -6.95% for HCOM. Across the full 4-year window we track, FQAL has the edge at +13.89% annualized vs +0.68%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FQAL has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 14.7% for HCOM. 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 -34.1% for FQAL and -28.8% for HCOM. 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FQAL charges 0.15% per year while HCOM charges 0.59%. On a $10,000 position that is $15 vs $59 annually, a gap of $44 per year that compounds over a long holding period. On income, FQAL currently yields 1.17% against 10.95% for HCOM.

Frequently Asked Questions

Which is cheaper, FQAL or HCOM?

FQAL has an expense ratio of 0.15% while HCOM charges 0.59%. FQAL is the cheaper option. On a $10,000 investment, that is $44 per year of difference.

Which performed better, FQAL or HCOM?

Over the past year FQAL returned +20.81% vs -4.90% for HCOM, so FQAL leads on 1-year performance. Over the longest common window we track (4 years), FQAL annualized +13.89% vs +0.68% for HCOM. Past performance does not guarantee future results.

Which is riskier, FQAL or HCOM?

FQAL has been the more volatile fund at 15.0% annualized versus 14.7% for HCOM. Worst drawdown: FQAL -34.1% vs HCOM -28.8%.

Should I hold both FQAL and HCOM?

FQAL and HCOM have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, FQAL or HCOM?

FQAL yields 1.17% while HCOM yields 10.95%, so HCOM currently pays the higher dividend yield.

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