FSKAX vs QQQ
Fidelity Total Market Index Fund vs Invesco QQQ Trust, Series 1
Which is better, FSKAX or QQQ?
Large Cap Blend against Large Cap Growth.
FSKAX has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90.
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 | FSKAX | QQQ |
|---|---|---|
| Expense Ratio | 0.02%Best | 0.18% |
| AUM | $141.6B | $437.3B |
| Dividend Yield | 0.94% | 0.43% |
| Holdings | 3,753 | 208 |
| YTD Price Return | +10.55% | +12.60%Best |
| 1Y Price Return | +10.22% | +11.07%Best |
| 3Y Price Return (annualized) | +19.50% | +22.36%Best |
| 5Y Price Return (annualized) | +8.99% | +12.07%Best |
| Volatility (annualized) | 15.8%Best | 21.1% |
| Max Drawdown | -26.0%Best | -35.6% |
| $10,000 over 5 years | $15,379 | $17,679Best |
| Fund Family | Fidelity Investments (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Sep 8, 2011 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for FSKAX. Both funds are measured the same way, so the comparison holds. FSKAX yields 0.94% and QQQ 0.43% on top.
Volatility and max drawdown are measured over the window both funds cover: Nov 12, 2021 to Nov 10, 2026 (5 years).
FSKAX 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 5 years both funds cover. Prices exclude distributions, on both funds alike.
FSKAX vs QQQ Performance
Fidelity Total Market Index Fund (FSKAX) is a mutual fund from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FSKAX returned +10.22% while QQQ returned +11.07%. Year to date, FSKAX is up 10.55% versus a gain of 12.60% for QQQ.
Over three years, FSKAX compounded at +19.50% per year against +22.36% for QQQ; over five years the annualized figures are +8.99% and +12.07% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 21.1% compared with 15.8% for FSKAX. 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 -26.0% for FSKAX and -35.6% 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FSKAX charges 0.02% per year while QQQ charges 0.18%. On a $10,000 position that is $2 vs $18 annually, a gap of $16 per year that compounds over a long holding period. On income, FSKAX currently yields 0.94% against 0.43% for QQQ.
Structure and taxes
FSKAX is a mutual fund and QQQ is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 1 holding in FSKAX and 101 in QQQ, totalling 0.0% and 99.7% 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 1 positions we hold weights for in FSKAX and 101 in QQQ, against full books of 3,753 and 208.
You are not choosing between two funds in isolation.
Whichever of FSKAX 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, FSKAX or QQQ?
FSKAX has an expense ratio of 0.02% while QQQ charges 0.18%. FSKAX is the cheaper option, by $16 a year on a $10,000 investment.
Which performed better, FSKAX or QQQ?
Over the past year FSKAX returned +10.22% vs +11.07% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FSKAX or QQQ?
QQQ has been the more volatile fund at 21.1% annualized versus 15.8% for FSKAX. Worst drawdown: FSKAX -26.0% vs QQQ -35.6%.
Should I hold both FSKAX and QQQ?
FSKAX and QQQ have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, FSKAX or QQQ?
FSKAX yields 0.94% while QQQ yields 0.43%, so FSKAX currently pays the higher dividend yield.
Is it better to hold FSKAX or QQQ in a taxable account?
QQQ is an ETF and FSKAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is QQQ better than FSKAX?
FSKAX has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. Which one suits a particular account depends on what it is for. This is information, not a recommendation.