FREL vs QQQ
Fidelity MSCI Real Estate Index ETF vs Invesco QQQ Trust, Series 1
Which is better, FREL or QQQ?
All Cap Blend against Large Cap Growth.
FREL has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 48.5%.
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 | FREL | QQQ |
|---|---|---|
| Expense Ratio | 0.08%Best | 0.18% |
| AUM | $1.5B | $483.5B |
| Dividend Yield | 3.27% | 0.44% |
| Holdings | 126 | 107 |
| YTD Return | +8.12% | +15.18%Best |
| 1Y Return | +4.99% | +19.65%Best |
| 3Y Return (annualized) | +9.25% | +24.60%Best |
| 5Y Return (annualized) | +1.18% | +13.94%Best |
| Volatility (annualized) | 17.1%Best | 18.7% |
| Max Drawdown | -43.5% | -35.1%Best |
| $10,000 over 5 years | $10,604 | $19,204Best |
| Top 10 Weight | 48.5% | 46.5%Best |
| Fund Family | Fidelity Investments (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | All Cap Blend | Large Cap Growth |
| Inception | Feb 2, 2015 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Feb 5, 2015 to Sep 15, 2026 (11.6 years).
FREL 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
FREL vs QQQ Performance
Fidelity MSCI Real Estate Index ETF (FREL) is an ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FREL returned +4.99% while QQQ returned +19.65%. Year to date, FREL is up 8.12% versus a gain of 15.18% for QQQ.
Over three years, FREL compounded at +9.25% per year against +24.60% for QQQ; over five years the annualized figures are +1.18% and +13.94% respectively. Across the full 12-year window we track, QQQ has the edge at +18.27% annualized vs +2.91%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.7% compared with 17.1% for FREL. 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 -43.5% for FREL 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 0.64. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FREL charges 0.08% per year while QQQ charges 0.18%. On a $10,000 position that is $8 vs $18 annually, a gap of $10 per year that compounds over a long holding period. On income, FREL currently yields 3.27% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 123 holdings in FREL and 102 in QQQ, totalling 99.9% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 123 positions we hold weights for in FREL and 102 in QQQ, against full books of 126 and 107.
What only one of them owns
Measured across the 123 and 102 positions we hold weights for.
QQQ holds 96 positions FREL does not, 97.5% of the fund.
Largest: NVDA 8.44%, AAPL 7.27%, MSFT 5.76%, AMZN 4.67%, MU 4.43%
You are not choosing between two funds in isolation.
Whichever of FREL and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FREL or QQQ?
FREL has an expense ratio of 0.08% while QQQ charges 0.18%. FREL is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, FREL or QQQ?
Over the past year FREL returned +4.99% vs +19.65% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), FREL annualized +2.91% vs +18.27% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FREL or QQQ?
QQQ has been the more volatile fund at 18.7% annualized versus 17.1% for FREL. Worst drawdown: FREL -43.5% vs QQQ -35.1%.
Should I hold both FREL and QQQ?
FREL and QQQ have a monthly-return correlation of 0.64, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FREL or QQQ?
FREL yields 3.27% while QQQ yields 0.44%, so FREL currently pays the higher dividend yield.
Is QQQ better than FREL?
FREL has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 48.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.