FSKAX vs QQQ
Fidelity Total Market Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
FSKAX has a lower expense ratio. QQQ delivered stronger 1-year returns. FSKAX offers more diversification with 3,773 holdings.
Side-by-Side Comparison
| Metric | FSKAX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.18% | |
| AUM | $99.4B | $496.3B | |
| Dividend Yield | 0.95% | 0.44% | |
| Holdings | 3,773 | 108 | |
| YTD Return | +13.00% | +16.30% | |
| 1Y Return | +19.44% | +24.83% | |
| 3Y Return (annualized) | +20.02% | +25.48% | |
| 5Y Return (annualized) | +10.36% | +14.50% | |
| Volatility (annualized) | 16.1% | 30.6% | |
| Max Drawdown | -26.0% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 8, 2011 | Mar 10, 1999 |
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 a ETF from Invesco (US). Over the past year FSKAX returned +19.44% while QQQ returned +24.83%. Year to date, FSKAX is up 13.00% versus a gain of 16.30% for QQQ.
Over three years, FSKAX compounded at +20.02% per year against +25.48% for QQQ; over five years the annualized figures are +10.36% and +14.50% respectively. Across the full 5-year window we track, QQQ has the edge at +13.01% annualized vs +10.36%. 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 16.1% 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 -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 0.92. 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 0.95% against 0.44% for QQQ.
Holdings Overlap
FSKAX and QQQ share 90 holdings out of 3701 unique holdings combined, representing a 42.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $16 per year of difference.
Which performed better, FSKAX or QQQ?
Over the past year FSKAX returned +19.44% vs +24.83% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), FSKAX annualized +10.36% vs +13.01% for QQQ. Past performance does not guarantee future results.
Which is riskier, FSKAX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.1% for FSKAX. Worst drawdown: FSKAX -26.0% vs QQQ -83.0%.
Should I hold both FSKAX and QQQ?
FSKAX and QQQ have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FSKAX and QQQ?
FSKAX and QQQ share 90 common holdings with a 42.9% weight overlap. Combined, they hold 3701 unique securities.
Which pays a higher dividend, FSKAX or QQQ?
FSKAX yields 0.95% while QQQ yields 0.44%, so FSKAX currently pays the higher dividend yield.
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