FGSM vs QQQ

Quick Verdict

QQQ has a lower expense ratio. FGSM delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: FGSMMore Diversified: QQQ

Side-by-Side Comparison

MetricFGSMQQQWinner
Expense Ratio0.82%0.18%
AUM$50M$455.8B
Dividend Yield1.28%0.41%
Holdings7108
YTD Return+17.65%+16.83%
1Y Return+30.52%+26.58%
3Y Return (annualized)-+24.70%
5Y Return (annualized)-+14.88%
Volatility (annualized)11.8%30.6%
Max Drawdown-17.7%-83.0%
Fund FamilyFrontier Asset ManagementInvesco (US)
CategoryEquityEquity
InceptionDec 19, 2024Mar 10, 1999

FGSM vs QQQ Performance

Frontier Asset Global Small Cap Equity ETF (FGSM) is a ETF from Frontier Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FGSM returned +30.52% while QQQ returned +26.58%. Year to date, FGSM is up 17.65% versus a gain of 16.83% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 11.8% for FGSM. 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 -17.7% for FGSM 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FGSM charges 0.82% per year while QQQ charges 0.18%. On a $10,000 position that is $82 vs $18 annually, a gap of $64 per year that compounds over a long holding period. On income, FGSM currently yields 1.28% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

FGSM and QQQ share 0 holdings out of 109 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, FGSM or QQQ?

FGSM has an expense ratio of 0.82% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $64 per year of difference.

Which performed better, FGSM or QQQ?

Over the past year FGSM returned +30.52% vs +26.58% for QQQ, so FGSM leads on 1-year performance. Over the longest common window we track (2 years), FGSM annualized +25.31% vs +13.06% for QQQ. Past performance does not guarantee future results.

Which is riskier, FGSM or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 11.8% for FGSM. Worst drawdown: FGSM -17.7% vs QQQ -83.0%.

Should I hold both FGSM and QQQ?

FGSM and QQQ have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FGSM and QQQ?

FGSM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 109 unique securities.

Which pays a higher dividend, FGSM or QQQ?

FGSM yields 1.28% while QQQ yields 0.41%, so FGSM currently pays the higher dividend yield.

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