FVAL vs QQQ
Fidelity Value Factor ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
FVAL has a lower expense ratio. FVAL delivered stronger 1-year returns. FVAL offers more diversification with 126 holdings.
Side-by-Side Comparison
| Metric | FVAL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $1.3B | $455.8B | |
| Dividend Yield | 1.61% | 0.41% | |
| Holdings | 129 | 108 | |
| YTD Return | +15.02% | +17.46% | |
| 1Y Return | +28.84% | +26.02% | |
| 3Y Return (annualized) | +20.31% | +25.51% | |
| 5Y Return (annualized) | +12.62% | +15.12% | |
| Volatility (annualized) | 16.4% | 30.6% | |
| Max Drawdown | -37.7% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 12, 2016 | Mar 10, 1999 |
FVAL vs QQQ Performance
Fidelity Value Factor ETF (FVAL) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FVAL returned +28.84% while QQQ returned +26.02%. Year to date, FVAL is up 15.02% versus a gain of 17.46% for QQQ.
Over three years, FVAL compounded at +20.31% per year against +25.51% for QQQ; over five years the annualized figures are +12.62% and +15.12% respectively. Across the full 10-year window we track, FVAL has the edge at +13.80% annualized vs +13.08%. 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 16.4% for FVAL. 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 -37.7% for FVAL 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FVAL charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, FVAL currently yields 1.61% against 0.41% for QQQ.
Holdings Overlap
FVAL and QQQ share 23 holdings out of 206 unique holdings combined, representing a 41.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FVAL or QQQ?
FVAL has an expense ratio of 0.15% while QQQ charges 0.18%. FVAL is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, FVAL or QQQ?
Over the past year FVAL returned +28.84% vs +26.02% for QQQ, so FVAL leads on 1-year performance. Over the longest common window we track (10 years), FVAL annualized +13.80% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, FVAL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.4% for FVAL. Worst drawdown: FVAL -37.7% vs QQQ -83.0%.
Should I hold both FVAL and QQQ?
FVAL and QQQ have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FVAL and QQQ?
FVAL and QQQ share 23 common holdings with a 41.9% weight overlap. Combined, they hold 206 unique securities.
Which pays a higher dividend, FVAL or QQQ?
FVAL yields 1.61% while QQQ yields 0.41%, so FVAL currently pays the higher dividend yield.
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