FIGB vs QQQ
FIGB vs QQQ
Fidelity Investment Grade 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 | FIGB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.18% | |
| AUM | $507M | $455.8B | |
| Dividend Yield | 4.45% | 0.41% | |
| Holdings | 760 | 108 | |
| YTD Return | +0.03% | +18.34% | |
| 1Y Return | +2.05% | +28.94% | |
| 3Y Return (annualized) | +4.26% | +25.28% | |
| 5Y Return (annualized) | -0.20% | +15.22% | |
| Volatility (annualized) | 6.3% | 30.6% | |
| Max Drawdown | -18.1% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 2, 2021 | Mar 10, 1999 |
FIGB vs QQQ Performance
Fidelity Investment Grade Bond ETF (FIGB) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FIGB returned +2.05% while QQQ returned +28.94%. Year to date, FIGB is up 0.03% versus a gain of 18.34% for QQQ.
Over three years, FIGB compounded at +4.26% per year against +25.28% for QQQ; over five years the annualized figures are -0.20% and +15.22% respectively. Across the full 5-year window we track, QQQ has the edge at +13.12% annualized vs +0.34%. 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 6.3% for FIGB. 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 -18.1% for FIGB 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FIGB 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, FIGB currently yields 4.45% against 0.41% for QQQ.
Holdings Overlap
FIGB and QQQ share 0 holdings out of 117 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, FIGB or QQQ?
FIGB 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, FIGB or QQQ?
Over the past year FIGB returned +2.05% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), FIGB annualized +0.34% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, FIGB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.3% for FIGB. Worst drawdown: FIGB -18.1% vs QQQ -83.0%.
Should I hold both FIGB and QQQ?
FIGB and QQQ have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FIGB and QQQ?
FIGB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 117 unique securities.
Which pays a higher dividend, FIGB or QQQ?
FIGB yields 4.45% while QQQ yields 0.41%, so FIGB currently pays the higher dividend yield.
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