FXAIX vs QQQ
Fidelity 500 Index Fund vs Invesco QQQ Trust, Series 1
Which is better, FXAIX or QQQ?
Large Cap Blend against Large Cap Growth.
FXAIX has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. FXAIX is less concentrated, with 36.4% of the fund in its ten largest positions against 46.5%.
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 | FXAIX | QQQ |
|---|---|---|
| Expense Ratio | 0.02%Best | 0.18% |
| AUM | $594.0B | $483.5B |
| Dividend Yield | 1.06% | 0.44% |
| Holdings | 507 | 107 |
| YTD Price Return | +11.90% | +16.60%Best |
| 1Y Price Return | +16.26% | +22.39%Best |
| 3Y Price Return (annualized) | +19.75% | +24.26%Best |
| 5Y Price Return (annualized) | +11.40% | +13.71%Best |
| Volatility (annualized) | 15.4%Best | 20.9% |
| Max Drawdown | -25.4%Best | -35.6% |
| $10,000 over 5 years | $17,156 | $19,010Best |
| Top 10 Weight | 36.4%Best | 46.5% |
| Fund Family | Fidelity Investments (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | May 4, 2011 | Mar 10, 1999 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for FXAIX. Both funds are measured the same way, so the comparison holds. FXAIX yields 1.06% and QQQ 0.44% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 13, 2021 to Sep 11, 2026 (5 years).
FXAIX 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 5 years both funds cover. Prices exclude distributions, on both funds alike.
FXAIX vs QQQ Performance
Fidelity 500 Index Fund (FXAIX) is a mutual fund from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FXAIX returned +16.26% while QQQ returned +22.39%. Year to date, FXAIX is up 11.90% versus a gain of 16.60% for QQQ.
Over three years, FXAIX compounded at +19.75% per year against +24.26% for QQQ; over five years the annualized figures are +11.40% and +13.71% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 15.4% for FXAIX. 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 -25.4% for FXAIX and -35.6% 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FXAIX 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, FXAIX currently yields 1.06% against 0.44% for QQQ.
Structure and taxes
FXAIX is a mutual fund and QQQ is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
54.1% of FXAIX's money is in holdings QQQ also owns. 93.6% of QQQ's money is in holdings FXAIX also owns.
Most of QQQ is already inside FXAIX. Owning both mostly buys the same companies twice.
86 positions in common, counted across the 508 positions we hold weights for in FXAIX and 102 in QQQ, against full books of 507 and 107.
What only one of them owns
Our book lists 9 positions for QQQ that do not appear in our book for FXAIX (3.4% of the fund), and 407 for FXAIX that do not appear in QQQ (45.1%).
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 FXAIX | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 7.51% | 8.44% | 0.93% |
| AAPLApple, Inc | 6.59% | 7.27% | 0.68% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 4.30% | 5.76% | 1.46% |
| AMZNAmazon.Com Inc | 3.62% | 4.67% | 1.05% |
| GOOGLAlphabet A Usd 0.001 | 3.25% | 3.36% | 0.11% |
| MUMicron Technology, Inc. | 2.02% | 4.43% | 2.41% |
| AVGOBroadcom Inc | 2.77% | 3.16% | 0.39% |
| GOOGAlphabet Inc | 2.59% | 3.13% | 0.54% |
| AMDAdvanced Micro Devices Inc. | 1.47% | 3.45% | 1.98% |
| METAMeta Platforms, Inc. | 1.92% | 2.78% | 0.86% |
93.6% of QQQ is already inside FXAIX.
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, FXAIX or QQQ?
FXAIX has an expense ratio of 0.02% while QQQ charges 0.18%. FXAIX is the cheaper option, by $16 a year on a $10,000 investment.
Which performed better, FXAIX or QQQ?
Over the past year FXAIX returned +16.26% vs +22.39% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FXAIX or QQQ?
QQQ has been the more volatile fund at 20.9% annualized versus 15.4% for FXAIX. Worst drawdown: FXAIX -25.4% vs QQQ -35.6%.
Should I hold both FXAIX and QQQ?
FXAIX and QQQ have a monthly-return correlation of 0.92, 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 FXAIX and QQQ?
93.6% of QQQ's money is in holdings FXAIX also owns. 93.6% of QQQ's is in holdings FXAIX also owns. They hold 86 positions in common, counted across the 508 positions we hold weights for in FXAIX and 102 in QQQ.
Which pays a higher dividend, FXAIX or QQQ?
FXAIX yields 1.06% while QQQ yields 0.44%, so FXAIX currently pays the higher dividend yield.
Is it better to hold FXAIX or QQQ in a taxable account?
QQQ is an ETF and FXAIX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is QQQ better than FXAIX?
FXAIX has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. FXAIX is less concentrated, with 36.4% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.