FXNAX vs QQQ
FXNAX vs QQQ
Fidelity US Bond Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
FXNAX has a lower expense ratio. QQQ delivered stronger 1-year returns. FXNAX offers more diversification with 5307 holdings.
Side-by-Side Comparison
| Metric | FXNAX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.18% | |
| AUM | $39.5B | $455.8B | |
| Dividend Yield | 3.39% | 0.41% | |
| Holdings | 10,443 | 108 | |
| YTD Return | -2.46% | +18.34% | |
| 1Y Return | -1.72% | +28.94% | |
| 3Y Return (annualized) | +0.46% | +25.28% | |
| 5Y Return (annualized) | -3.43% | +15.22% | |
| Volatility (annualized) | 6.2% | 30.6% | |
| Max Drawdown | -21.6% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 4, 2011 | Mar 10, 1999 |
FXNAX vs QQQ Performance
Fidelity US Bond Index Fund (FXNAX) 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 FXNAX returned -1.72% while QQQ returned +28.94%. Year to date, FXNAX is down 2.46% versus a gain of 18.34% for QQQ.
Over three years, FXNAX compounded at +0.46% per year against +25.28% for QQQ; over five years the annualized figures are -3.43% and +15.22% respectively. Across the full 5-year window we track, QQQ has the edge at +13.12% annualized vs -3.43%. 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 6.2% for FXNAX. 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 -21.6% for FXNAX 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXNAX charges 0.03% per year while QQQ charges 0.18%. On a $10,000 position that is $3 vs $18 annually, a gap of $16 per year that compounds over a long holding period. On income, FXNAX currently yields 3.39% against 0.41% for QQQ.
Holdings Overlap
FXNAX and QQQ share 0 holdings out of 5410 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, FXNAX or QQQ?
FXNAX has an expense ratio of 0.03% while QQQ charges 0.18%. FXNAX is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, FXNAX or QQQ?
Over the past year FXNAX returned -1.72% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), FXNAX annualized -3.43% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, FXNAX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.2% for FXNAX. Worst drawdown: FXNAX -21.6% vs QQQ -83.0%.
Should I hold both FXNAX and QQQ?
FXNAX and QQQ have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXNAX and QQQ?
FXNAX and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 5410 unique securities.
Which pays a higher dividend, FXNAX or QQQ?
FXNAX yields 3.39% while QQQ yields 0.41%, so FXNAX currently pays the higher dividend yield.
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