FLCB vs QQQ
FLCB vs QQQ
Franklin US Core Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
FLCB has a lower expense ratio. QQQ delivered stronger 1-year returns. FLCB offers more diversification with 355 holdings.
Side-by-Side Comparison
| Metric | FLCB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $3.0B | $455.8B | |
| Dividend Yield | 4.23% | 0.41% | |
| Holdings | 473 | 108 | |
| YTD Return | -0.65% | +14.45% | |
| 1Y Return | +1.60% | +24.70% | |
| 3Y Return (annualized) | +3.96% | +24.19% | |
| 5Y Return (annualized) | -0.59% | +14.49% | |
| Volatility (annualized) | 5.6% | 30.6% | |
| Max Drawdown | -20.4% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 17, 2019 | Mar 10, 1999 |
FLCB vs QQQ Performance
Franklin US Core Bond ETF (FLCB) is a ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FLCB returned +1.60% while QQQ returned +24.70%. Year to date, FLCB is down 0.65% versus a gain of 14.45% for QQQ.
Over three years, FLCB compounded at +3.96% per year against +24.19% for QQQ; over five years the annualized figures are -0.59% and +14.49% respectively. Across the full 7-year window we track, QQQ has the edge at +12.98% annualized vs +0.15%. 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 5.6% for FLCB. 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 -20.4% for FLCB 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLCB 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, FLCB currently yields 4.23% against 0.41% for QQQ.
Holdings Overlap
FLCB and QQQ share 0 holdings out of 458 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, FLCB or QQQ?
FLCB has an expense ratio of 0.15% while QQQ charges 0.18%. FLCB is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, FLCB or QQQ?
Over the past year FLCB returned +1.60% vs +24.70% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), FLCB annualized +0.15% vs +12.98% for QQQ. Past performance does not guarantee future results.
Which is riskier, FLCB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.6% for FLCB. Worst drawdown: FLCB -20.4% vs QQQ -83.0%.
Should I hold both FLCB and QQQ?
FLCB and QQQ have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLCB and QQQ?
FLCB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 458 unique securities.
Which pays a higher dividend, FLCB or QQQ?
FLCB yields 4.23% while QQQ yields 0.41%, so FLCB currently pays the higher dividend yield.
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