FDMO vs QQQ
Fidelity Momentum Factor ETF vs Invesco QQQ Trust, Series 1
Which is better, FDMO or QQQ?
Each has led over a different period.
FDMO has a lower expense ratio. FDMO led over 3Y, QQQ over 1Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. FDMO is less concentrated, with 38.6% 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 | FDMO | QQQ |
|---|---|---|
| Expense Ratio | 0.15%Best | 0.18% |
| AUM | $870M | $506.1B |
| Dividend Yield | 0.62% | 0.42% |
| Holdings | 270 | 321 |
| YTD Return | +11.23% | +19.30%Best |
| 1Y Return | +14.39% | +22.47%Best |
| 3Y Return (annualized) | +26.36%Best | +26.18% |
| 5Y Return (annualized) | +14.12% | +15.42%Best |
| Volatility (annualized) | 16.4%Best | 19.0% |
| Max Drawdown | -34.2%Best | -35.1% |
| $10,000 over 5 years | $19,356 | $20,484Best |
| Top 10 Weight | 38.6%Best | 46.7% |
| Fund Family | Fidelity Investments (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Sep 12, 2016 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Sep 15, 2016 to Oct 14, 2026 (10.1 years).
FDMO 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 covers the 10.1 years both funds cover.
FDMO vs QQQ Performance
Fidelity Momentum Factor ETF (FDMO) is an ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FDMO returned +14.39% while QQQ returned +22.47%. Year to date, FDMO is up 11.23% versus a gain of 19.30% for QQQ.
Over three years, FDMO compounded at +26.36% per year against +26.18% for QQQ; over five years the annualized figures are +14.12% and +15.42% respectively. Across the full 10-year window we track, QQQ has the edge at +20.24% annualized vs +14.46%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.0% compared with 16.4% for FDMO. 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 -34.2% for FDMO 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FDMO charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, FDMO currently yields 0.62% against 0.42% for QQQ.
Holdings Overlap
52.1% of FDMO's money is in holdings QQQ also owns. 52.6% of QQQ's money is in holdings FDMO also owns.
The two portfolios partly overlap.
27 positions in common, counted across the 133 positions we hold weights for in FDMO and 101 in QQQ, against full books of 270 and 321.
What only one of them owns
Our book lists 65 positions for QQQ that do not appear in our book for FDMO (43.6% of the fund), and 101 for FDMO that do not appear in QQQ (47.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FDMO | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 8.81% | 8.33% | 0.48% |
| AAPLApple, Inc | 7.78% | 7.35% | 0.43% |
| GOOGLAlphabet Inc-cl A | 5.36% | 3.05% | 2.31% |
| MUMicron Technology, Inc. | 2.96% | 5.02% | 2.06% |
| AMZNAmazon.Com Inc | 3.47% | 4.07% | 0.60% |
| AMDAdvanced Micro Devices Inc. | 2.80% | 4.17% | 1.37% |
| INTCIntel Corp. | 2.06% | 2.64% | 0.58% |
| TSLATesla Motors Inc | 1.59% | 2.82% | 1.23% |
| LRCXLam Research Corp | 1.82% | 1.72% | 0.10% |
| AMATApplied Materials, Inc. | 1.69% | 1.70% | 0.01% |
52.6% of QQQ is already inside FDMO.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FDMO or QQQ?
FDMO has an expense ratio of 0.15% while QQQ charges 0.18%. FDMO is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, FDMO or QQQ?
Over the past year FDMO returned +14.39% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), FDMO annualized +14.46% vs +20.24% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDMO or QQQ?
QQQ has been the more volatile fund at 19.0% annualized versus 16.4% for FDMO. Worst drawdown: FDMO -34.2% vs QQQ -35.1%.
Should I hold both FDMO and QQQ?
FDMO and QQQ have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between FDMO and QQQ?
52.6% of QQQ's money is in holdings FDMO also owns. 52.6% of QQQ's is in holdings FDMO also owns. They hold 27 positions in common, counted across the 133 positions we hold weights for in FDMO and 101 in QQQ.
Which pays a higher dividend, FDMO or QQQ?
FDMO yields 0.62% while QQQ yields 0.42%, so FDMO currently pays the higher dividend yield.
Is QQQ better than FDMO?
FDMO has a lower expense ratio. FDMO led over 3Y, QQQ over 1Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. FDMO is less concentrated, with 38.6% 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.