FTBD vs QQQ
FTBD vs QQQ
Fidelity Tactical Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FTBD offers more diversification with 618 holdings.
Side-by-Side Comparison
| Metric | FTBD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.18% | |
| AUM | $37M | $455.8B | |
| Dividend Yield | 5.46% | 0.41% | |
| Holdings | 1,525 | 108 | |
| YTD Return | +0.41% | +12.48% | |
| 1Y Return | +3.63% | +22.35% | |
| 3Y Return (annualized) | +4.86% | +22.30% | |
| 5Y Return (annualized) | - | +14.24% | |
| Volatility (annualized) | 5.8% | 30.6% | |
| Max Drawdown | -7.0% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 24, 2023 | Mar 10, 1999 |
FTBD vs QQQ Performance
Fidelity Tactical Bond ETF (FTBD) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FTBD returned +3.63% while QQQ returned +22.35%. Year to date, FTBD is up 0.41% versus a gain of 12.48% for QQQ.
Over three years, FTBD compounded at +4.86% per year against +22.30% for QQQ. Across the full 4-year window we track, QQQ has the edge at +12.91% annualized vs +3.97%. 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 5.8% for FTBD. 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 -7.0% for FTBD 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTBD charges 0.55% per year while QQQ charges 0.18%. On a $10,000 position that is $55 vs $18 annually, a gap of $37 per year that compounds over a long holding period. On income, FTBD currently yields 5.46% against 0.41% for QQQ.
Holdings Overlap
FTBD and QQQ share 1 holdings out of 720 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FTBD | Weight in QQQ | Difference |
|---|---|---|---|
| MSTR | 0.02% | 0.13% | 0.11% |
Frequently Asked Questions
Which is cheaper, FTBD or QQQ?
FTBD has an expense ratio of 0.55% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, FTBD or QQQ?
Over the past year FTBD returned +3.63% vs +22.35% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), FTBD annualized +3.97% vs +12.91% for QQQ. Past performance does not guarantee future results.
Which is riskier, FTBD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.8% for FTBD. Worst drawdown: FTBD -7.0% vs QQQ -83.0%.
Should I hold both FTBD and QQQ?
FTBD and QQQ have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTBD and QQQ?
FTBD and QQQ share 1 common holdings with a 0.0% weight overlap. Combined, they hold 720 unique securities.
Which pays a higher dividend, FTBD or QQQ?
FTBD yields 5.46% while QQQ yields 0.41%, so FTBD currently pays the higher dividend yield.
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