FDMO vs QQQ

Quick Verdict

FDMO has a lower expense ratio. QQQ delivered stronger 1-year returns. FDMO offers more diversification with 125 holdings.

Lower Fees: FDMOHigher Returns: QQQMore Diversified: FDMO

Side-by-Side Comparison

MetricFDMOQQQWinner
Expense Ratio0.15%0.18%
AUM$957M$455.8B
Dividend Yield0.58%0.41%
Holdings130108
YTD Return+12.81%+16.83%
1Y Return+22.36%+26.58%
3Y Return (annualized)+25.81%+24.70%
5Y Return (annualized)+14.42%+14.88%
Volatility (annualized)16.5%30.6%
Max Drawdown-34.2%-83.0%
Fund FamilyFidelity Investments (US)Invesco (US)
CategoryEquityEquity
InceptionSep 12, 2016Mar 10, 1999

FDMO vs QQQ Performance

Fidelity Momentum Factor ETF (FDMO) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FDMO returned +22.36% while QQQ returned +26.58%. Year to date, FDMO is up 12.81% versus a gain of 16.83% for QQQ.

Over three years, FDMO compounded at +25.81% per year against +24.70% for QQQ; over five years the annualized figures are +14.42% and +14.88% respectively. Across the full 10-year window we track, FDMO has the edge at +14.91% annualized vs +13.06%. 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 16.5% for FDMO. 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 -34.2% for FDMO 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

FDMO 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, FDMO currently yields 0.58% against 0.41% for QQQ.

Holdings Overlap

44.2%overlap

FDMO and QQQ share 25 holdings out of 203 unique holdings combined, representing a 44.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FDMOWeight in QQQDifference
NVDA7.33%7.88%0.55%
AAPL6.06%7.46%1.40%
MSFT4.64%4.65%0.01%
GOOGLProProPro
AMZNProProPro
AVGOProProPro
MUProProPro
AMDProProPro
METAProProPro
TSLAProProPro
See all 10 holdings FDMO shares with QQQ
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Frequently Asked Questions

Which is cheaper, FDMO or QQQ?

FDMO has an expense ratio of 0.15% while QQQ charges 0.18%. FDMO is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, FDMO or QQQ?

Over the past year FDMO returned +22.36% vs +26.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), FDMO annualized +14.91% vs +13.06% for QQQ. Past performance does not guarantee future results.

Which is riskier, FDMO or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 16.5% for FDMO. Worst drawdown: FDMO -34.2% vs QQQ -83.0%.

Should I hold both FDMO and QQQ?

FDMO and QQQ have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between FDMO and QQQ?

FDMO and QQQ share 25 common holdings with a 44.2% weight overlap. Combined, they hold 203 unique securities.

Which pays a higher dividend, FDMO or QQQ?

FDMO yields 0.58% while QQQ yields 0.41%, so FDMO currently pays the higher dividend yield.

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