FTEC vs QQQ
Fidelity MSCI Information Technology Index ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
FTEC has a lower expense ratio. FTEC delivered stronger 1-year returns. FTEC offers more diversification with 286 holdings.
Side-by-Side Comparison
| Metric | FTEC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.18% | |
| AUM | $19.9B | $496.3B | |
| Dividend Yield | 0.37% | 0.44% | |
| Holdings | 286 | 108 | |
| YTD Return | +23.45% | +15.47% | |
| 1Y Return | +35.43% | +24.44% | |
| 3Y Return (annualized) | +30.86% | +25.47% | |
| 5Y Return (annualized) | +18.13% | +14.22% | |
| Volatility (annualized) | 19.7% | 30.6% | |
| Max Drawdown | -35.0% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2013 | Mar 10, 1999 |
FTEC vs QQQ Performance
Fidelity MSCI Information Technology Index ETF (FTEC) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FTEC returned +35.43% while QQQ returned +24.44%. Year to date, FTEC is up 23.45% versus a gain of 15.47% for QQQ.
Over three years, FTEC compounded at +30.86% per year against +25.47% for QQQ; over five years the annualized figures are +18.13% and +14.22% respectively. Across the full 13-year window we track, FTEC has the edge at +20.96% annualized vs +12.99%. 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 19.7% for FTEC. 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 -35.0% for FTEC 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FTEC 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, FTEC currently yields 0.37% against 0.44% for QQQ.
Holdings Overlap
FTEC and QQQ share 3 holdings out of 174 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTEC or QQQ?
FTEC has an expense ratio of 0.08% while QQQ charges 0.18%. FTEC is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, FTEC or QQQ?
Over the past year FTEC returned +35.43% vs +24.44% for QQQ, so FTEC leads on 1-year performance. Over the longest common window we track (13 years), FTEC annualized +20.96% vs +12.99% for QQQ. Past performance does not guarantee future results.
Which is riskier, FTEC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.7% for FTEC. Worst drawdown: FTEC -35.0% vs QQQ -83.0%.
Should I hold both FTEC and QQQ?
FTEC and QQQ have a monthly-return correlation of 0.97, 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 FTEC and QQQ?
FTEC and QQQ share 3 common holdings with a 0.8% weight overlap. Combined, they hold 174 unique securities.
Which pays a higher dividend, FTEC or QQQ?
FTEC yields 0.37% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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