FSMB vs QQQ
First Trust Short Duration Managed Municipal ETF vs Invesco QQQ Trust, Series 1
Which is better, FSMB or QQQ?
Municipal Bond against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
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 | FSMB | QQQ |
|---|---|---|
| Expense Ratio | 0.34% | 0.18%Best |
| AUM | $622M | $483.5B |
| Dividend Yield | 3.18% | 0.44% |
| Holdings | 1,104 | 107 |
| YTD Return | +0.51% | +15.18%Best |
| 1Y Return | +0.67% | +19.65%Best |
| 3Y Return (annualized) | +3.12% | +24.60%Best |
| 5Y Return (annualized) | +1.23% | +13.94%Best |
| Volatility (annualized) | 2.6%Best | 20.6% |
| Max Drawdown | -6.3%Best | -35.1% |
| $10,000 over 5 years | $10,630 | $19,204Best |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | Municipal Bond | Large Cap Growth |
| Inception | Nov 1, 2018 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 27, 2018 to Sep 15, 2026 (7.8 years).
FSMB 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.
FSMB vs QQQ Performance
First Trust Short Duration Managed Municipal ETF (FSMB) is an ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FSMB returned +0.67% while QQQ returned +19.65%. Year to date, FSMB is up 0.51% versus a gain of 15.18% for QQQ.
Over three years, FSMB compounded at +3.12% per year against +24.60% for QQQ; over five years the annualized figures are +1.23% and +13.94% respectively. Across the full 8-year window we track, QQQ has the edge at +21.10% annualized vs +1.42%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.6% compared with 2.6% for FSMB. 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 -6.3% for FSMB 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 0.49. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FSMB charges 0.34% per year while QQQ charges 0.18%. On a $10,000 position that is $34 vs $18 annually, a gap of $16 per year that compounds over a long holding period. On income, FSMB currently yields 3.18% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 322 holdings in FSMB and 102 in QQQ, totalling 58.8% 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 322 positions we hold weights for in FSMB and 102 in QQQ, against full books of 1,104 and 107.
You are not choosing between two funds in isolation.
Whichever of FSMB 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, FSMB or QQQ?
FSMB has an expense ratio of 0.34% while QQQ charges 0.18%. QQQ is the cheaper option, by $16 a year on a $10,000 investment.
Which performed better, FSMB or QQQ?
Over the past year FSMB returned +0.67% vs +19.65% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), FSMB annualized +1.42% vs +21.10% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FSMB or QQQ?
QQQ has been the more volatile fund at 20.6% annualized versus 2.6% for FSMB. Worst drawdown: FSMB -6.3% vs QQQ -35.1%.
Should I hold both FSMB and QQQ?
FSMB and QQQ have a monthly-return correlation of 0.49, 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, FSMB or QQQ?
FSMB yields 3.18% while QQQ yields 0.44%, so FSMB currently pays the higher dividend yield.
Is QQQ better than FSMB?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.