FLAX vs QQQ
Franklin FTSE Asia ex Japan ETF vs Invesco QQQ Trust, Series 1
Which is better, FLAX or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FLAX is less concentrated, with 40.0% 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 | FLAX | QQQ |
|---|---|---|
| Expense Ratio | 0.19% | 0.18%Best |
| AUM | $56M | $506.1B |
| Dividend Yield | 2.02% | 0.42% |
| Holdings | 1,623 | 321 |
| YTD Return | +14.70% | +19.14%Best |
| 1Y Return | +21.32% | +21.45%Best |
| 3Y Return (annualized) | +22.07% | +26.10%Best |
| 5Y Return (annualized) | +7.58% | +15.25%Best |
| Volatility (annualized) | 18.0%Best | 20.1% |
| Max Drawdown | -42.5% | -35.1%Best |
| $10,000 over 5 years | $14,410 | $20,333Best |
| Top 10 Weight | 40.0%Best | 46.7% |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Feb 6, 2018 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Feb 8, 2018 to Oct 15, 2026 (8.7 years).
FLAX 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 8.7 years both funds cover.
FLAX vs QQQ Performance
Franklin FTSE Asia ex Japan ETF (FLAX) is an ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FLAX returned +21.32% while QQQ returned +21.45%. Year to date, FLAX is up 14.70% versus a gain of 19.14% for QQQ.
Over three years, FLAX compounded at +22.07% per year against +26.10% for QQQ; over five years the annualized figures are +7.58% and +15.25% respectively. Across the full 9-year window we track, QQQ has the edge at +20.10% annualized vs +6.50%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 18.0% for FLAX. 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 -42.5% for FLAX 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 0.63. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FLAX charges 0.19% per year while QQQ charges 0.18%. On a $10,000 position that is $19 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, FLAX currently yields 2.02% against 0.42% for QQQ.
Holdings Overlap
0.5% of FLAX's money is in holdings QQQ also owns. 0.2% of QQQ's money is in holdings FLAX also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 1,598 positions we hold weights for in FLAX and 101 in QQQ, against full books of 1,623 and 321.
What only one of them owns
Our book lists 94 positions for QQQ that do not appear in our book for FLAX (97.2% of the fund), and 6 for FLAX that do not appear in QQQ (0.3%).
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 FLAX | Weight in QQQ | Difference |
|---|---|---|---|
| PDD:IEPdd Holdings Inc. | 0.48% | 0.22% | 0.26% |
You are not choosing between two funds in isolation.
Whichever of FLAX 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, FLAX or QQQ?
FLAX has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, FLAX or QQQ?
Over the past year FLAX returned +21.32% vs +21.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), FLAX annualized +6.50% vs +20.10% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FLAX or QQQ?
QQQ has been the more volatile fund at 20.1% annualized versus 18.0% for FLAX. Worst drawdown: FLAX -42.5% vs QQQ -35.1%.
Should I hold both FLAX and QQQ?
FLAX and QQQ have a monthly-return correlation of 0.63, 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, FLAX or QQQ?
FLAX yields 2.02% while QQQ yields 0.42%, so FLAX currently pays the higher dividend yield.
Is QQQ better than FLAX?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. FLAX is less concentrated, with 40.0% 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.