FHEQ vs QQQ
FHEQ vs QQQ
Fidelity Hedged Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FHEQ offers more diversification with 168 holdings.
Side-by-Side Comparison
| Metric | FHEQ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.48% | 0.18% | |
| AUM | $897M | $455.8B | |
| Dividend Yield | 0.55% | 0.41% | |
| Holdings | 172 | 108 | |
| YTD Return | +11.35% | +18.20% | |
| 1Y Return | +18.07% | +27.63% | |
| 3Y Return (annualized) | - | +25.54% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 9.7% | 30.6% | |
| Max Drawdown | -11.1% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 9, 2024 | Mar 10, 1999 |
FHEQ vs QQQ Performance
Fidelity Hedged Equity ETF (FHEQ) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FHEQ returned +18.07% while QQQ returned +27.63%. Year to date, FHEQ is up 11.35% versus a gain of 18.20% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 9.7% for FHEQ. 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 -11.1% for FHEQ 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FHEQ charges 0.48% per year while QQQ charges 0.18%. On a $10,000 position that is $48 vs $18 annually, a gap of $30 per year that compounds over a long holding period. On income, FHEQ currently yields 0.55% against 0.41% for QQQ.
Holdings Overlap
FHEQ and QQQ share 34 holdings out of 237 unique holdings combined, representing a 49.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FHEQ | Weight in QQQ | Difference |
|---|---|---|---|
| NVDA | 7.84% | 7.88% | 0.04% |
| AAPL | 6.94% | 7.46% | 0.52% |
| MSFT | 4.11% | 4.65% | 0.54% |
| AMZN | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
See all 10 holdings FHEQ 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, FHEQ or QQQ?
FHEQ has an expense ratio of 0.48% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, FHEQ or QQQ?
Over the past year FHEQ returned +18.07% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), FHEQ annualized +15.39% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, FHEQ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 9.7% for FHEQ. Worst drawdown: FHEQ -11.1% vs QQQ -83.0%.
Should I hold both FHEQ and QQQ?
FHEQ and QQQ have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FHEQ and QQQ?
FHEQ and QQQ share 34 common holdings with a 49.4% weight overlap. Combined, they hold 237 unique securities.
Which pays a higher dividend, FHEQ or QQQ?
FHEQ yields 0.55% while QQQ yields 0.41%, so FHEQ currently pays the higher dividend yield.
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