FXAIX vs QQQ
FXAIX vs QQQ
Fidelity 500 Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
FXAIX has a lower expense ratio. QQQ delivered stronger 1-year returns. FXAIX offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FXAIX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.18% | |
| AUM | $594.0B | $455.8B | |
| Dividend Yield | 1.04% | 0.41% | |
| Holdings | 1,009 | 108 | |
| YTD Return | +9.29% | +12.48% | |
| 1Y Return | +18.19% | +22.35% | |
| 3Y Return (annualized) | +17.90% | +22.30% | |
| 5Y Return (annualized) | +11.15% | +14.24% | |
| Volatility (annualized) | 15.7% | 30.6% | |
| Max Drawdown | -25.4% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 4, 2011 | Mar 10, 1999 |
FXAIX vs QQQ Performance
Fidelity 500 Index Fund (FXAIX) is a mutual fund from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FXAIX returned +18.19% while QQQ returned +22.35%. Year to date, FXAIX is up 9.29% versus a gain of 12.48% for QQQ.
Over three years, FXAIX compounded at +17.90% per year against +22.30% for QQQ; over five years the annualized figures are +11.15% and +14.24% respectively. Across the full 5-year window we track, QQQ has the edge at +12.91% annualized vs +11.15%. 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 15.7% for FXAIX. 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 -25.4% for FXAIX 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FXAIX charges 0.02% per year while QQQ charges 0.18%. On a $10,000 position that is $2 vs $18 annually, a gap of $16 per year that compounds over a long holding period. On income, FXAIX currently yields 1.04% against 0.41% for QQQ.
Holdings Overlap
FXAIX and QQQ share 83 holdings out of 525 unique holdings combined, representing a 47.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FXAIX | Weight in QQQ | Difference |
|---|---|---|---|
| NVDA | 7.31% | 7.88% | 0.57% |
| AAPL | 6.63% | 7.46% | 0.83% |
| MSFT | 4.96% | 4.65% | 0.31% |
| AMZN | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| TSLA | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
See all 10 holdings FXAIX shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, FXAIX or QQQ?
FXAIX has an expense ratio of 0.02% while QQQ charges 0.18%. FXAIX is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, FXAIX or QQQ?
Over the past year FXAIX returned +18.19% vs +22.35% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), FXAIX annualized +11.15% vs +12.91% for QQQ. Past performance does not guarantee future results.
Which is riskier, FXAIX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.7% for FXAIX. Worst drawdown: FXAIX -25.4% vs QQQ -83.0%.
Should I hold both FXAIX and QQQ?
FXAIX and QQQ have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FXAIX and QQQ?
FXAIX and QQQ share 83 common holdings with a 47.4% weight overlap. Combined, they hold 525 unique securities.
Which pays a higher dividend, FXAIX or QQQ?
FXAIX yields 1.04% while QQQ yields 0.41%, so FXAIX currently pays the higher dividend yield.
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