FSEC vs QQQ
Fidelity Investment Grade Securitized ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FSEC offers more diversification with 731 holdings.
Side-by-Side Comparison
| Metric | FSEC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.18% | |
| AUM | $4.7B | $455.8B | |
| Dividend Yield | 4.75% | 0.41% | |
| Holdings | 1,026 | 108 | |
| YTD Return | +0.83% | +18.20% | |
| 1Y Return | +4.09% | +27.63% | |
| 3Y Return (annualized) | +5.11% | +25.54% | |
| 5Y Return (annualized) | +0.39% | +15.12% | |
| Volatility (annualized) | 6.6% | 30.6% | |
| Max Drawdown | -18.0% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 2, 2021 | Mar 10, 1999 |
FSEC vs QQQ Performance
Fidelity Investment Grade Securitized ETF (FSEC) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FSEC returned +4.09% while QQQ returned +27.63%. Year to date, FSEC is up 0.83% versus a gain of 18.20% for QQQ.
Over three years, FSEC compounded at +5.11% per year against +25.54% for QQQ; over five years the annualized figures are +0.39% and +15.12% respectively. Across the full 5-year window we track, QQQ has the edge at +13.11% annualized vs +0.41%. 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 6.6% for FSEC. 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 -18.0% for FSEC 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FSEC charges 0.36% per year while QQQ charges 0.18%. On a $10,000 position that is $36 vs $18 annually, a gap of $18 per year that compounds over a long holding period. On income, FSEC currently yields 4.75% against 0.41% for QQQ.
Holdings Overlap
FSEC and QQQ share 0 holdings out of 834 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, FSEC or QQQ?
FSEC has an expense ratio of 0.36% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, FSEC or QQQ?
Over the past year FSEC returned +4.09% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), FSEC annualized +0.41% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, FSEC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.6% for FSEC. Worst drawdown: FSEC -18.0% vs QQQ -83.0%.
Should I hold both FSEC and QQQ?
FSEC and QQQ have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FSEC and QQQ?
FSEC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 834 unique securities.
Which pays a higher dividend, FSEC or QQQ?
FSEC yields 4.75% while QQQ yields 0.41%, so FSEC currently pays the higher dividend yield.
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