FHEQ vs QQQ
Fidelity Hedged Equity ETF vs Invesco QQQ Trust, Series 1
Which is better, FHEQ or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. FHEQ is less concentrated, with 39.4% 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 | FHEQ | QQQ |
|---|---|---|
| Expense Ratio | 0.48% | 0.18%Best |
| AUM | $986M | $506.1B |
| Dividend Yield | 0.59% | 0.42% |
| Holdings | 198 | 321 |
| YTD Return | +9.15% | +19.30%Best |
| 1Y Return | +11.24% | +22.47%Best |
| 3Y Return (annualized) | - | +26.18% |
| 5Y Return (annualized) | - | +15.42% |
| Volatility (annualized) | 9.4%Best | 17.3% |
| Max Drawdown | -11.1%Best | -22.8% |
| $10,000 over 2.5 years | $13,652 | $16,555Best |
| Top 10 Weight | 39.4%Best | 46.7% |
| Fund Family | Fidelity Investments (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Apr 9, 2024 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 2.5 years row, are measured over the window both funds cover: Apr 11, 2024 to Oct 14, 2026 (2.5 years).
FHEQ 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 2.5 years both funds cover.
FHEQ vs QQQ Performance
Fidelity Hedged Equity ETF (FHEQ) is an ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FHEQ returned +11.24% while QQQ returned +22.47%. Year to date, FHEQ is up 9.15% versus a gain of 19.30% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 9.4% for FHEQ. 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 -11.1% for FHEQ and -22.8% 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FHEQ charges 0.48% per year while QQQ charges 0.18%. On a $10,000 position that is $48 vs $18 annually, a gap of $30 per year that compounds over a long holding period. On income, FHEQ currently yields 0.59% against 0.42% for QQQ.
Holdings Overlap
51.0% of FHEQ's money is in holdings QQQ also owns. 67.0% of QQQ's money is in holdings FHEQ also owns.
The two portfolios partly overlap.
33 positions in common, counted across the 177 positions we hold weights for in FHEQ and 101 in QQQ, against full books of 198 and 321.
What only one of them owns
Our book lists 60 positions for QQQ that do not appear in our book for FHEQ (29.3% of the fund), and 124 for FHEQ that do not appear in QQQ (45.3%).
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 FHEQ | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 8.41% | 8.33% | 0.08% |
| AAPLApple, Inc | 7.35% | 7.35% | 0.00% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 5.20% | 5.76% | 0.56% |
| AMZNAmazon.Com Inc | 3.89% | 4.07% | 0.18% |
| MUMicron Technology, Inc. | 2.01% | 5.02% | 3.01% |
| GOOGLAlphabet Inc-cl A | 3.03% | 3.05% | 0.02% |
| METAMeta Platform Inc | 2.54% | 3.26% | 0.72% |
| AVGOBroadcom Inc | 2.79% | 2.53% | 0.26% |
| AMDAdvanced Micro Devices Inc. | 0.97% | 4.17% | 3.20% |
| GOOGAlphabet, Inc.- Cl C | 2.19% | 2.85% | 0.66% |
67.0% of QQQ is already inside FHEQ.
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, FHEQ or QQQ?
FHEQ has an expense ratio of 0.48% while QQQ charges 0.18%. QQQ is the cheaper option, by $30 a year on a $10,000 investment.
Which performed better, FHEQ or QQQ?
Over the past year FHEQ returned +11.24% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FHEQ or QQQ?
QQQ has been the more volatile fund at 17.3% annualized versus 9.4% for FHEQ. Worst drawdown: FHEQ -11.1% vs QQQ -22.8%.
Should I hold both FHEQ and QQQ?
FHEQ and QQQ have a monthly-return correlation of 0.86, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FHEQ and QQQ?
67.0% of QQQ's money is in holdings FHEQ also owns. 67.0% of QQQ's is in holdings FHEQ also owns. They hold 33 positions in common, counted across the 177 positions we hold weights for in FHEQ and 101 in QQQ.
Which pays a higher dividend, FHEQ or QQQ?
FHEQ yields 0.59% while QQQ yields 0.42%, so FHEQ currently pays the higher dividend yield.
Is QQQ better than FHEQ?
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. FHEQ is less concentrated, with 39.4% 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.