FNCL vs QQQ
FNCL vs QQQ
Fidelity MSCI Financials Index ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
FNCL has a lower expense ratio. QQQ delivered stronger 1-year returns. FNCL offers more diversification with 366 holdings.
Side-by-Side Comparison
| Metric | FNCL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.18% | |
| AUM | $2.2B | $455.8B | |
| Dividend Yield | 1.65% | 0.41% | |
| Holdings | 381 | 108 | |
| YTD Return | +6.19% | +18.20% | |
| 1Y Return | +14.27% | +27.63% | |
| 3Y Return (annualized) | +20.52% | +25.54% | |
| 5Y Return (annualized) | +10.79% | +15.12% | |
| Volatility (annualized) | 18.6% | 30.6% | |
| Max Drawdown | -45.0% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2013 | Mar 10, 1999 |
FNCL vs QQQ Performance
Fidelity MSCI Financials Index ETF (FNCL) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FNCL returned +14.27% while QQQ returned +27.63%. Year to date, FNCL is up 6.19% versus a gain of 18.20% for QQQ.
Over three years, FNCL compounded at +20.52% per year against +25.54% for QQQ; over five years the annualized figures are +10.79% and +15.12% respectively. Across the full 13-year window we track, QQQ has the edge at +13.11% annualized vs +10.66%. 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 18.6% for FNCL. 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 -45.0% for FNCL 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FNCL charges 0.08% per year while QQQ charges 0.18%. On a $10,000 position that is $8 vs $18 annually, a gap of $10 per year that compounds over a long holding period. On income, FNCL currently yields 1.65% against 0.41% for QQQ.
Holdings Overlap
FNCL and QQQ share 1 holdings out of 468 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FNCL | Weight in QQQ | Difference |
|---|---|---|---|
| PYPL | 0.54% | 0.19% | 0.35% |
Frequently Asked Questions
Which is cheaper, FNCL or QQQ?
FNCL has an expense ratio of 0.08% while QQQ charges 0.18%. FNCL is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, FNCL or QQQ?
Over the past year FNCL returned +14.27% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), FNCL annualized +10.66% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, FNCL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.6% for FNCL. Worst drawdown: FNCL -45.0% vs QQQ -83.0%.
Should I hold both FNCL and QQQ?
FNCL and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FNCL and QQQ?
FNCL and QQQ share 1 common holdings with a 0.2% weight overlap. Combined, they hold 468 unique securities.
Which pays a higher dividend, FNCL or QQQ?
FNCL yields 1.65% while QQQ yields 0.41%, so FNCL currently pays the higher dividend yield.
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