FQAL vs TYO
Fidelity Quality Factor ETF vs Direxion Daily 7-10 Year Treasury Bear 3X ETF
Quick Verdict
FQAL has a lower expense ratio. FQAL delivered stronger 1-year returns. FQAL offers more diversification with 130 holdings.
Side-by-Side Comparison
| Metric | FQAL | TYO | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 1.00% | |
| AUM | $1.4B | $13M | |
| Dividend Yield | 1.15% | 2.48% | |
| Holdings | 130 | 6 | |
| YTD Return | +12.00% | +11.78% | |
| 1Y Return | +18.57% | +11.29% | |
| 3Y Return (annualized) | +20.35% | +3.64% | |
| 5Y Return (annualized) | +11.63% | +15.26% | |
| Volatility (annualized) | 15.0% | 19.3% | |
| Max Drawdown | -34.1% | -90.4% | |
| Fund Family | Fidelity Investments (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Sep 12, 2016 | Apr 16, 2009 |
FQAL vs TYO Performance
Fidelity Quality Factor ETF (FQAL) is a ETF from Fidelity Investments (US) and Direxion Daily 7-10 Year Treasury Bear 3X ETF (TYO) is a ETF from Direxion Shares ETF Trust. Over the past year FQAL returned +18.57% while TYO returned +11.29%. Year to date, FQAL is up 12.00% versus a gain of 11.78% for TYO.
Over three years, FQAL compounded at +20.35% per year against +3.64% for TYO; over five years the annualized figures are +11.63% and +15.26% respectively. Across the full 10-year window we track, FQAL has the edge at +13.71% annualized vs -7.20%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TYO has been the more volatile fund, with annualized monthly volatility of 19.3% 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 -90.4% for TYO. 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 -0.20. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FQAL charges 0.15% per year while TYO charges 1.00%. On a $10,000 position that is $15 vs $100 annually, a gap of $85 per year that compounds over a long holding period. On income, FQAL currently yields 1.15% against 2.48% for TYO.
Holdings Overlap
FQAL and TYO share 0 holdings out of 128 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, FQAL or TYO?
FQAL has an expense ratio of 0.15% while TYO charges 1.00%. FQAL is the cheaper option. On a $10,000 investment, that is $85 per year of difference.
Which performed better, FQAL or TYO?
Over the past year FQAL returned +18.57% vs +11.29% for TYO, so FQAL leads on 1-year performance. Over the longest common window we track (10 years), FQAL annualized +13.71% vs -7.20% for TYO. Past performance does not guarantee future results.
Which is riskier, FQAL or TYO?
TYO has been the more volatile fund at 19.3% annualized versus 15.0% for FQAL. Worst drawdown: FQAL -34.1% vs TYO -90.4%.
Should I hold both FQAL and TYO?
FQAL and TYO have a monthly-return correlation of -0.20, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FQAL and TYO?
FQAL and TYO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 128 unique securities.
Which pays a higher dividend, FQAL or TYO?
FQAL yields 1.15% while TYO yields 2.48%, so TYO currently pays the higher dividend yield.
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