FQAL vs QQQ
Fidelity Quality Factor ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
FQAL has a lower expense ratio. QQQ delivered stronger 1-year returns. FQAL offers more diversification with 130 holdings.
Side-by-Side Comparison
| Metric | FQAL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $1.4B | $496.3B | |
| Dividend Yield | 1.15% | 0.44% | |
| Holdings | 130 | 108 | |
| YTD Return | +12.56% | +16.64% | |
| 1Y Return | +19.37% | +27.27% | |
| 3Y Return (annualized) | +20.54% | +25.96% | |
| 5Y Return (annualized) | +11.62% | +14.54% | |
| Volatility (annualized) | 15.0% | 30.6% | |
| Max Drawdown | -34.1% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 12, 2016 | Mar 10, 1999 |
FQAL vs QQQ Performance
Fidelity Quality Factor ETF (FQAL) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FQAL returned +19.37% while QQQ returned +27.27%. Year to date, FQAL is up 12.56% versus a gain of 16.64% for QQQ.
Over three years, FQAL compounded at +20.54% per year against +25.96% for QQQ; over five years the annualized figures are +11.62% and +14.54% respectively. Across the full 10-year window we track, FQAL has the edge at +13.76% annualized vs +13.03%. 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 15.0% 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 -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 0.89. 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 1.15% against 0.44% for QQQ.
Holdings Overlap
FQAL and QQQ share 32 holdings out of 195 unique holdings combined, representing a 43.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $3 per year of difference.
Which performed better, FQAL or QQQ?
Over the past year FQAL returned +19.37% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), FQAL annualized +13.76% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, FQAL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.0% for FQAL. Worst drawdown: FQAL -34.1% vs QQQ -83.0%.
Should I hold both FQAL and QQQ?
FQAL and QQQ have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FQAL and QQQ?
FQAL and QQQ share 32 common holdings with a 43.7% weight overlap. Combined, they hold 195 unique securities.
Which pays a higher dividend, FQAL or QQQ?
FQAL yields 1.15% while QQQ yields 0.44%, so FQAL currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.