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 | 15.19% | 15.46% |
1Y Return | 24.78% | 28.15% |
3Y Return (Ann) | 5.00% | 8.77% |
5Y Return (Ann) | 10.29% | 20.70% |
10Y Return (Ann) | 8.77% | 17.75% |
Sharpe Ratio | 2.15 | 1.58 |
Daily Std Dev | 11.26% | 17.69% |
Max Drawdown | -54.44% | -82.98% |
Current Drawdown | 0.00% | -6.27% |
Correlation
The correlation between FAFFX and QQQ is 0.84, 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
The year-to-date returns for both investments are quite close, with FAFFX having a 15.19% return and QQQ slightly higher at 15.46%. Over the past 10 years, FAFFX has underperformed QQQ with an annualized return of 8.77%, while QQQ has yielded a comparatively higher 17.75% 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 1.41%, more than QQQ's 0.50% yield.
TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Fidelity Advisor Freedom 2040 Fund Class A | 1.41% | 1.16% | 10.83% | 9.81% | 5.79% | 6.93% | 11.85% | 5.16% | 4.77% | 5.40% | 8.36% | 8.00% |
Invesco QQQ | 0.50% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
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 3.82%, while Invesco QQQ (QQQ) has a volatility of 5.90%. 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.