FTEC vs QQQ
Fidelity MSCI Information Technology Index ETF vs Invesco QQQ Trust, Series 1
Which is better, FTEC or QQQ?
Nearly the same fund. FTEC costs less.
FTEC has a lower expense ratio. FTEC led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 63.5%.
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 | FTEC | QQQ |
|---|---|---|
| Expense Ratio | 0.08%Best | 0.18% |
| AUM | $21.3B | $498.6B |
| Dividend Yield | 0.35% | 0.42% |
| Holdings | 870 | 321 |
| YTD Return | +34.33%Best | +22.09% |
| 1Y Return | +34.70%Best | +24.51% |
| 3Y Return (annualized) | +34.73%Best | +27.61% |
| 5Y Return (annualized) | +21.14%Best | +16.57% |
| Volatility (annualized) | 19.6% | 18.0%Best |
| Max Drawdown | -35.0%Best | -35.1% |
| $10,000 over 5 years | $26,088Best | $21,525 |
| Top 10 Weight | 63.5% | 47.2%Best |
| Fund Family | Fidelity Investments (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Oct 21, 2013 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Oct 24, 2013 to Oct 12, 2026 (13 years).
FTEC 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 13 years both funds cover.
FTEC vs QQQ Performance
Fidelity MSCI Information Technology Index ETF (FTEC) is an ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FTEC returned +34.70% while QQQ returned +24.51%. Year to date, FTEC is up 34.33% versus a gain of 22.09% for QQQ.
Over three years, FTEC compounded at +34.73% per year against +27.61% for QQQ; over five years the annualized figures are +21.14% and +16.57% respectively. Across the full 13-year window we track, FTEC has the edge at +21.51% annualized vs +18.83%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FTEC has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 18.0% for QQQ. 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 -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 0.97. 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 0.35% against 0.42% for QQQ.
Holdings Overlap
77.8% of FTEC's money is in holdings QQQ also owns. 56.7% of QQQ's money is in holdings FTEC also owns.
Most of FTEC is already inside QQQ. Owning both mostly buys the same companies twice.
38 positions in common, counted across the 281 positions we hold weights for in FTEC and 102 in QQQ, against full books of 870 and 321.
What only one of them owns
Our book lists 58 positions for QQQ that do not appear in our book for FTEC (41.0% of the fund), and 209 for FTEC that do not appear in QQQ (21.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FTEC | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp | 17.47% | 8.45% | 9.02% |
| AAPLApple, Inc | 16.51% | 7.80% | 8.71% |
| MSFTMicrosoft Corp | 11.21% | 5.88% | 5.33% |
| MUMicron Technology, Inc. | 4.25% | 4.85% | 0.60% |
| AVGOBroadcom Inc | 4.40% | 2.74% | 1.66% |
| AMDAdvanced Micro Devices Inc | 3.24% | 3.71% | 0.47% |
| INTCIntel Corporation | 1.77% | 2.28% | 0.51% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.74% | 1.95% | 0.21% |
| PLTRPalantir Technologies Inc | 1.44% | 1.69% | 0.25% |
| LRCXLam Research Corp | 1.47% | 1.64% | 0.17% |
77.8% of FTEC is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $10 a year on a $10,000 investment.
Which performed better, FTEC or QQQ?
Over the past year FTEC returned +34.70% vs +24.51% for QQQ, so FTEC leads on 1-year performance. Over the longest common window we track (13 years), FTEC annualized +21.51% vs +18.83% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTEC or QQQ?
FTEC has been the more volatile fund at 19.6% annualized versus 18.0% for QQQ. Worst drawdown: FTEC -35.0% vs QQQ -35.1%.
Should I hold both FTEC and QQQ?
FTEC and QQQ have a monthly-return correlation of 0.97, 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.
What is the holdings overlap between FTEC and QQQ?
77.8% of FTEC's money is in holdings QQQ also owns. 56.7% of QQQ's is in holdings FTEC also owns. They hold 38 positions in common, counted across the 281 positions we hold weights for in FTEC and 102 in QQQ.
Which pays a higher dividend, FTEC or QQQ?
FTEC yields 0.35% while QQQ yields 0.42%, so QQQ currently pays the higher dividend yield.
Is QQQ better than FTEC?
FTEC has a lower expense ratio. FTEC led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 63.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.