FXNAX vs QQQ
Fidelity US Bond Index Fund vs Invesco QQQ Trust, Series 1
Which is better, FXNAX or QQQ?
Long Term High Quality against Large Cap Growth.
FXNAX has a lower expense ratio.
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 | FXNAX | QQQ |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.18% |
| AUM | $39.5B | $483.5B |
| Dividend Yield | 3.49% | 0.44% |
| Holdings | 10,442 | 107 |
| YTD Price Return | -3.98% | +16.93% |
| 1Y Price Return | -4.61% | +21.51% |
| 3Y Price Return (annualized) | +0.37% | +24.61% |
| 5Y Price Return (annualized) | -3.69% | +13.91% |
| Volatility (annualized) | 6.2%Best | 20.9% |
| Max Drawdown | -21.4%Best | -35.6% |
| Fund Family | Fidelity Investments (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | Long Term High Quality | Large Cap Growth |
| Inception | May 4, 2011 | Mar 10, 1999 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. FXNAX currently yields 3.49% and QQQ 0.44%.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2021 to Sep 16, 2026 (5 years).
FXNAX vs QQQ Performance
Fidelity US Bond Index Fund (FXNAX) 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 FXNAX's price moved -4.61% and QQQ's +21.51%, before the income each one paid out.
Over three years, FXNAX compounded at +0.37% per year against +24.61% for QQQ; over five years the annualized figures are -3.69% and +13.91% 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 6.2% for FXNAX. 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 -21.4% for FXNAX 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 0.57. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FXNAX charges 0.03% per year while QQQ charges 0.18%. On a $10,000 position that is $3 vs $18 annually, a gap of $16 per year that compounds over a long holding period. On income, FXNAX currently yields 3.49% against 0.44% for QQQ.
Structure and taxes
FXNAX 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
At least 0.8% of QQQ's money is in holdings FXNAX also owns.
Stated as a floor: for FXNAX, our book for it covers 79.0% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
The two holdings books were reported 66 days apart, FXNAX as of May 31, 2026 and QQQ as of Aug 5, 2026, so some of the difference between them is the time between the two reports rather than the funds.
1 positions in common, counted across the 5,235 positions we hold weights for in FXNAX and 102 in QQQ, against full books of 10,442 and 107.
Top Shared Holdings
| Stock | Weight in FXNAX | Weight in QQQ | Difference |
|---|---|---|---|
| TMUST-Mobile Us Inc Com Usd0.00001 | 0.02% | 0.82% | 0.80% |
You are not choosing between two funds in isolation.
Whichever of FXNAX 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, FXNAX or QQQ?
FXNAX has an expense ratio of 0.03% while QQQ charges 0.18%. FXNAX is the cheaper option, by $16 a year on a $10,000 investment.
Which is riskier, FXNAX or QQQ?
QQQ has been the more volatile fund at 20.9% annualized versus 6.2% for FXNAX. Worst drawdown: FXNAX -21.4% vs QQQ -35.6%.
Should I hold both FXNAX and QQQ?
FXNAX and QQQ have a monthly-return correlation of 0.57, 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, FXNAX or QQQ?
FXNAX yields 3.49% while QQQ yields 0.44%, so FXNAX currently pays the higher dividend yield.
Is it better to hold FXNAX or QQQ in a taxable account?
QQQ is an ETF and FXNAX 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 FXNAX?
FXNAX has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.