FAFFX vs. QQQ
Compare and contrast key facts about Fidelity Advisor Freedom 2040 Fund Class A (FAFFX) and Invesco QQQ (QQQ).
FAFFX is managed by Fidelity. It was launched on Jul 24, 2003. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FAFFX or QQQ.
Key characteristics
| FAFFX | QQQ | |
|---|---|---|
| YTD Return | 15.09% | 26.02% |
| 1Y Return | 26.05% | 36.73% |
| 3Y Return (Ann) | -0.99% | 9.97% |
| 5Y Return (Ann) | 4.52% | 21.44% |
| 10Y Return (Ann) | 3.68% | 18.42% |
| Sharpe Ratio | 2.39 | 2.28 |
| Sortino Ratio | 3.33 | 2.98 |
| Omega Ratio | 1.44 | 1.41 |
| Calmar Ratio | 1.12 | 2.94 |
| Martin Ratio | 15.81 | 10.71 |
| Ulcer Index | 1.65% | 3.72% |
| Daily Std Dev | 10.91% | 17.35% |
| Max Drawdown | -54.44% | -82.98% |
| Current Drawdown | -3.17% | -0.06% |
Correlation
The correlation between FAFFX and QQQ is 0.83, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
FAFFX vs. QQQ - Performance Comparison
In the year-to-date period, FAFFX achieves a 15.09% return, which is significantly lower than QQQ's 26.02% return. Over the past 10 years, FAFFX has underperformed QQQ with an annualized return of 3.68%, while QQQ has yielded a comparatively higher 18.42% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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FAFFX vs. QQQ - Expense Ratio Comparison
FAFFX has a 1.00% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
FAFFX vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Fidelity Advisor Freedom 2040 Fund Class A (FAFFX) and Invesco QQQ (QQQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
FAFFX vs. QQQ - Dividend Comparison
FAFFX's dividend yield for the trailing twelve months is around 0.97%, more than QQQ's 0.59% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FAFFX Fidelity Advisor Freedom 2040 Fund Class A | 0.97% | 1.12% | 1.77% | 1.92% | 0.67% | 1.12% | 1.75% | 0.95% | 1.26% | 3.97% | 8.36% | 8.00% |
QQQ Invesco QQQ | 0.59% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.02% |
Drawdowns
FAFFX vs. QQQ - Drawdown Comparison
The maximum FAFFX drawdown since its inception was -54.44%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for FAFFX and QQQ. For additional features, visit the drawdowns tool.
Volatility
FAFFX vs. QQQ - Volatility Comparison
The current volatility for Fidelity Advisor Freedom 2040 Fund Class A (FAFFX) is 3.01%, while Invesco QQQ (QQQ) has a volatility of 5.13%. This indicates that FAFFX experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.