FLTB vs QQQ
FLTB vs QQQ
Fidelity Limited Term 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 | FLTB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $408M | $455.8B | |
| Dividend Yield | 4.76% | 0.41% | |
| Holdings | 937 | 108 | |
| YTD Return | +1.23% | +18.20% | |
| 1Y Return | +3.55% | +27.63% | |
| 3Y Return (annualized) | +5.49% | +25.54% | |
| 5Y Return (annualized) | +2.36% | +15.12% | |
| Volatility (annualized) | 128.3% | 30.6% | |
| Max Drawdown | -73.5% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 6, 2014 | Mar 10, 1999 |
FLTB vs QQQ Performance
Fidelity Limited Term Bond ETF (FLTB) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FLTB returned +3.55% while QQQ returned +27.63%. Year to date, FLTB is up 1.23% versus a gain of 18.20% for QQQ.
Over three years, FLTB compounded at +5.49% per year against +25.54% for QQQ; over five years the annualized figures are +2.36% and +15.12% respectively. Across the full 23-year window we track, QQQ has the edge at +13.11% annualized vs +7.74%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FLTB has been the more volatile fund, with annualized monthly volatility of 128.3% compared with 30.6% for QQQ. 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 -73.5% for FLTB 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 0.06. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLTB charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, FLTB currently yields 4.76% against 0.41% for QQQ.
Holdings Overlap
FLTB and QQQ share 0 holdings out of 120 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, FLTB or QQQ?
FLTB has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, FLTB or QQQ?
Over the past year FLTB returned +3.55% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), FLTB annualized +7.74% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, FLTB or QQQ?
FLTB has been the more volatile fund at 128.3% annualized versus 30.6% for QQQ. Worst drawdown: FLTB -73.5% vs QQQ -83.0%.
Should I hold both FLTB and QQQ?
FLTB and QQQ have a monthly-return correlation of 0.06, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLTB and QQQ?
FLTB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 120 unique securities.
Which pays a higher dividend, FLTB or QQQ?
FLTB yields 4.76% while QQQ yields 0.41%, so FLTB currently pays the higher dividend yield.
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