FALN vs QQQ
iShares Fallen Angels USD Bond ETF vs Invesco QQQ Trust, Series 1
Which is better, FALN or QQQ?
High Yield Bond against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FALN is less concentrated, with 18.0% of the fund in its ten largest positions against 46.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FALN | QQQ |
|---|---|---|
| Expense Ratio | 0.25% | 0.18%Best |
| AUM | $1.6B | $506.1B |
| Dividend Yield | 6.78% | 0.42% |
| Holdings | 156 | 321 |
| YTD Return | -0.73% | +19.30%Best |
| 1Y Return | +0.25% | +22.47%Best |
| 3Y Return (annualized) | +8.55% | +26.18%Best |
| 5Y Return (annualized) | +2.82% | +15.42%Best |
| Volatility (annualized) | 9.4%Best | 18.8% |
| Max Drawdown | -30.0%Best | -35.1% |
| $10,000 over 5 years | $11,492 | $20,484Best |
| Top 10 Weight | 18.0%Best | 46.7% |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Growth |
| Inception | Jun 14, 2016 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Jun 17, 2016 to Oct 14, 2026 (10.3 years).
FALN vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
FALN vs QQQ Performance
iShares Fallen Angels USD Bond ETF (FALN) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FALN returned +0.25% while QQQ returned +22.47%. Year to date, FALN is down 0.73% versus a gain of 19.30% for QQQ.
Over three years, FALN compounded at +8.55% per year against +26.18% for QQQ; over five years the annualized figures are +2.82% and +15.42% respectively. Across the full 10-year window we track, QQQ has the edge at +20.87% annualized vs +3.33%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 9.4% for FALN. 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 -30.0% for FALN and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.68. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FALN 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, FALN currently yields 6.78% against 0.42% for QQQ.
Holdings Overlap
We hold position weights for 153 holdings in FALN and 101 in QQQ, totalling 97.0% and 99.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 153 positions we hold weights for in FALN and 101 in QQQ, against full books of 156 and 321.
What only one of them owns
Measured across the 153 and 101 positions we hold weights for.
QQQ holds 93 positions FALN does not, 96.3% of the fund.
Largest: NVDA 8.33%, AAPL 7.35%, MSFT 5.76%, MU 5.02%, AMD 4.17%
You are not choosing between two funds in isolation.
Whichever of FALN and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FALN or QQQ?
FALN has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option, by $7 a year on a $10,000 investment.
Which performed better, FALN or QQQ?
Over the past year FALN returned +0.25% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), FALN annualized +3.33% vs +20.87% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FALN or QQQ?
QQQ has been the more volatile fund at 18.8% annualized versus 9.4% for FALN. Worst drawdown: FALN -30.0% vs QQQ -35.1%.
Should I hold both FALN and QQQ?
FALN and QQQ have a monthly-return correlation of 0.68, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FALN or QQQ?
FALN yields 6.78% while QQQ yields 0.42%, so FALN currently pays the higher dividend yield.
Is QQQ better than FALN?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FALN is less concentrated, with 18.0% of the fund in its ten largest positions against 46.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.