FQAL vs QQQ
Fidelity Quality Factor ETF vs Invesco QQQ Trust, Series 1
Which is better, FQAL or QQQ?
Large Cap Blend against Large Cap Growth.
FQAL has a lower expense ratio. FQAL led over 1Y, QQQ over 3Y, 5Y and the full window. FQAL is less concentrated, with 39.5% of the fund in its ten largest positions against 46.9%.
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 | FQAL | QQQ |
|---|---|---|
| Expense Ratio | 0.15%Best | 0.18% |
| AUM | $1.6B | $437.3B |
| Dividend Yield | 1.16% | 0.43% |
| Holdings | 278 | 208 |
| YTD Return | +11.96% | +12.98%Best |
| 1Y Return | +12.49%Best | +11.59% |
| 3Y Return (annualized) | +19.86% | +23.05%Best |
| 5Y Return (annualized) | +10.63% | +12.74%Best |
| Volatility (annualized) | 14.8%Best | 19.1% |
| Max Drawdown | -34.1%Best | -35.1% |
| $10,000 over 5 years | $16,572 | $18,213Best |
| Top 10 Weight | 39.5%Best | 46.9% |
| Fund Family | Fidelity Investments (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Sep 12, 2016 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Sep 15, 2016 to Nov 11, 2026 (10.2 years).
FQAL 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 10.2 years both funds cover.
FQAL vs QQQ Performance
Fidelity Quality Factor ETF (FQAL) is an ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FQAL returned +12.49% while QQQ returned +11.59%. Year to date, FQAL is up 11.96% versus a gain of 12.98% for QQQ.
Over three years, FQAL compounded at +19.86% per year against +23.05% for QQQ; over five years the annualized figures are +10.63% and +12.74% respectively. Across the full 10-year window we track, QQQ has the edge at +19.43% annualized vs +13.38%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.1% compared with 14.8% for FQAL. 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 -35.1% 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FQAL charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, FQAL currently yields 1.16% against 0.43% for QQQ.
Holdings Overlap
47.9% of FQAL's money is in holdings QQQ also owns. 53.1% of QQQ's money is in holdings FQAL also owns.
The two portfolios partly overlap.
32 positions in common, counted across the 134 positions we hold weights for in FQAL and 101 in QQQ, against full books of 278 and 208.
What only one of them owns
Our book lists 62 positions for QQQ that do not appear in our book for FQAL (44.1% of the fund), and 99 for FQAL that do not appear in QQQ (51.3%).
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 FQAL | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp | 7.58% | 8.05% | 0.47% |
| AAPLApple Inc | 7.47% | 7.68% | 0.21% |
| MSFTMicrosoft Corp | 5.96% | 6.16% | 0.20% |
| GOOGLAlphabet Inc | 4.58% | 3.15% | 1.43% |
| MUMicron Technology, Inc. | 1.99% | 4.47% | 2.48% |
| METAMeta Platforms Inc | 2.31% | 3.37% | 1.06% |
| AVGOBroadcom Inc | 2.59% | 2.52% | 0.07% |
| PLTRPalantir Technologies Inc. | 1.36% | 1.96% | 0.60% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.15% | 1.84% | 0.69% |
| LRCXLam Research Corp | 0.99% | 1.47% | 0.48% |
53.1% of QQQ is already inside FQAL.
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, FQAL or QQQ?
FQAL has an expense ratio of 0.15% while QQQ charges 0.18%. FQAL is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, FQAL or QQQ?
Over the past year FQAL returned +12.49% vs +11.59% for QQQ, so FQAL leads on 1-year performance. Over the longest common window we track (10 years), FQAL annualized +13.38% vs +19.43% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FQAL or QQQ?
QQQ has been the more volatile fund at 19.1% annualized versus 14.8% for FQAL. Worst drawdown: FQAL -34.1% vs QQQ -35.1%.
Should I hold both FQAL and QQQ?
FQAL and QQQ have a monthly-return correlation of 0.88, 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 FQAL and QQQ?
53.1% of QQQ's money is in holdings FQAL also owns. 53.1% of QQQ's is in holdings FQAL also owns. They hold 32 positions in common, counted across the 134 positions we hold weights for in FQAL and 101 in QQQ.
Which pays a higher dividend, FQAL or QQQ?
FQAL yields 1.16% while QQQ yields 0.43%, so FQAL currently pays the higher dividend yield.
Is QQQ better than FQAL?
FQAL has a lower expense ratio. FQAL led over 1Y, QQQ over 3Y, 5Y and the full window. FQAL is less concentrated, with 39.5% of the fund in its ten largest positions against 46.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.