FBND vs QQQ
FBND vs QQQ
Fidelity Total Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | FBND | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.18% | |
| AUM | $26.6B | $455.8B | |
| Dividend Yield | 5.07% | 0.41% | |
| Holdings | 1,558 | 108 | |
| YTD Return | +0.34% | +18.34% | |
| 1Y Return | +2.66% | +28.94% | |
| 3Y Return (annualized) | +4.89% | +25.28% | |
| 5Y Return (annualized) | +0.43% | +15.22% | |
| Volatility (annualized) | 5.0% | 30.6% | |
| Max Drawdown | -17.3% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 6, 2014 | Mar 10, 1999 |
FBND vs QQQ Performance
Fidelity Total Bond ETF (FBND) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FBND returned +2.66% while QQQ returned +28.94%. Year to date, FBND is up 0.34% versus a gain of 18.34% for QQQ.
Over three years, FBND compounded at +4.89% per year against +25.28% for QQQ; over five years the annualized figures are +0.43% and +15.22% respectively. Across the full 12-year window we track, QQQ has the edge at +13.12% annualized vs +1.00%. 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 5.0% for FBND. 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 -17.3% for FBND 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FBND charges 0.36% per year while QQQ charges 0.18%. On a $10,000 position that is $36 vs $18 annually, a gap of $18 per year that compounds over a long holding period. On income, FBND currently yields 5.07% against 0.41% for QQQ.
Holdings Overlap
FBND and QQQ share 0 holdings out of 144 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FBND or QQQ?
FBND has an expense ratio of 0.36% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, FBND or QQQ?
Over the past year FBND returned +2.66% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), FBND annualized +1.00% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, FBND or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.0% for FBND. Worst drawdown: FBND -17.3% vs QQQ -83.0%.
Should I hold both FBND and QQQ?
FBND and QQQ have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FBND and QQQ?
FBND and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 144 unique securities.
Which pays a higher dividend, FBND or QQQ?
FBND yields 5.07% while QQQ yields 0.41%, so FBND currently pays the higher dividend yield.
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