FFSM vs QQQ
FFSM vs QQQ
Fidelity Fundamental Small-Mid Cap ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FFSM delivered stronger 1-year returns. FFSM offers more diversification with 190 holdings.
Side-by-Side Comparison
| Metric | FFSM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.43% | 0.18% | |
| AUM | $1.4B | $455.8B | |
| Dividend Yield | 0.43% | 0.41% | |
| Holdings | 194 | 108 | |
| YTD Return | +19.32% | +14.45% | |
| 1Y Return | +34.91% | +24.70% | |
| 3Y Return (annualized) | +18.92% | +24.19% | |
| 5Y Return (annualized) | +10.72% | +14.49% | |
| Volatility (annualized) | 18.8% | 30.6% | |
| Max Drawdown | -26.6% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 2, 2021 | Mar 10, 1999 |
FFSM vs QQQ Performance
Fidelity Fundamental Small-Mid Cap ETF (FFSM) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FFSM returned +34.91% while QQQ returned +24.70%. Year to date, FFSM is up 19.32% versus a gain of 14.45% for QQQ.
Over three years, FFSM compounded at +18.92% per year against +24.19% for QQQ; over five years the annualized figures are +10.72% and +14.49% respectively. Across the full 6-year window we track, QQQ has the edge at +12.98% annualized vs +12.06%. 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 18.8% for FFSM. 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 -26.6% for FFSM 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FFSM charges 0.43% per year while QQQ charges 0.18%. On a $10,000 position that is $43 vs $18 annually, a gap of $25 per year that compounds over a long holding period. On income, FFSM currently yields 0.43% against 0.41% for QQQ.
Holdings Overlap
FFSM and QQQ share 4 holdings out of 289 unique holdings combined, representing a 2.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FFSM | Weight in QQQ | Difference |
|---|---|---|---|
| LITE | 2.28% | 0.26% | 2.02% |
| STX | 0.87% | 0.85% | 0.02% |
| WDC | 0.81% | 0.85% | 0.04% |
| AXON | Pro | Pro | Pro |
See all 4 holdings FFSM shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, FFSM or QQQ?
FFSM has an expense ratio of 0.43% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, FFSM or QQQ?
Over the past year FFSM returned +34.91% vs +24.70% for QQQ, so FFSM leads on 1-year performance. Over the longest common window we track (6 years), FFSM annualized +12.06% vs +12.98% for QQQ. Past performance does not guarantee future results.
Which is riskier, FFSM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.8% for FFSM. Worst drawdown: FFSM -26.6% vs QQQ -83.0%.
Should I hold both FFSM and QQQ?
FFSM and QQQ have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FFSM and QQQ?
FFSM and QQQ share 4 common holdings with a 2.1% weight overlap. Combined, they hold 289 unique securities.
Which pays a higher dividend, FFSM or QQQ?
FFSM yields 0.43% while QQQ yields 0.41%, so FFSM currently pays the higher dividend yield.
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