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FAFFX vs. QQQ
Performance
Risk-Adjusted Performance
Dividends
Drawdowns
Volatility

Performance

FAFFX vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Advisor Freedom 2040 Fund Class A (FAFFX) and Invesco QQQ (QQQ). The values are adjusted to include any dividend payments, if applicable.

-5.00%0.00%5.00%10.00%JuneJulyAugustSeptemberOctoberNovember
6.47%
11.13%
FAFFX
QQQ

Returns By Period

In the year-to-date period, FAFFX achieves a 15.35% return, which is significantly lower than QQQ's 24.91% return. Over the past 10 years, FAFFX has underperformed QQQ with an annualized return of 3.62%, while QQQ has yielded a comparatively higher 17.98% annualized return.


FAFFX

YTD

15.35%

1M

0.98%

6M

6.48%

1Y

22.05%

5Y (annualized)

4.21%

10Y (annualized)

3.62%

QQQ

YTD

24.91%

1M

2.82%

6M

11.13%

1Y

31.77%

5Y (annualized)

20.68%

10Y (annualized)

17.98%

Key characteristics


FAFFXQQQ
Sharpe Ratio2.051.83
Sortino Ratio2.842.43
Omega Ratio1.371.33
Calmar Ratio1.082.34
Martin Ratio13.028.50
Ulcer Index1.69%3.74%
Daily Std Dev10.75%17.33%
Max Drawdown-54.44%-82.98%
Current Drawdown-2.95%-0.94%

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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.


FAFFX
Fidelity Advisor Freedom 2040 Fund Class A
Expense ratio chart for FAFFX: current value at 1.00% compared with the broader market ranging from 0.00% to 2.12%.0.50%1.00%1.50%2.00%1.00%
Expense ratio chart for QQQ: current value at 0.20% compared with the broader market ranging from 0.00% to 2.12%.0.50%1.00%1.50%2.00%0.20%

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.


-0.50.00.51.00.8

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.


Sharpe ratio
The chart of Sharpe ratio for FAFFX, currently valued at 2.05, compared to the broader market-1.000.001.002.003.004.005.002.051.83
The chart of Sortino ratio for FAFFX, currently valued at 2.84, compared to the broader market0.005.0010.002.842.43
The chart of Omega ratio for FAFFX, currently valued at 1.37, compared to the broader market1.002.003.004.001.371.33
The chart of Calmar ratio for FAFFX, currently valued at 1.08, compared to the broader market0.005.0010.0015.0020.001.082.34
The chart of Martin ratio for FAFFX, currently valued at 13.02, compared to the broader market0.0020.0040.0060.0080.0013.028.50
FAFFX
QQQ

The current FAFFX Sharpe Ratio is 2.05, which is comparable to the QQQ Sharpe Ratio of 1.83. The chart below compares the historical Sharpe Ratios of FAFFX and QQQ, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.


Rolling 12-month Sharpe Ratio1.001.502.002.503.00JuneJulyAugustSeptemberOctoberNovember
2.05
1.83
FAFFX
QQQ

Dividends

FAFFX vs. QQQ - Dividend Comparison

FAFFX's dividend yield for the trailing twelve months is around 0.97%, more than QQQ's 0.60% yield.


TTM20232022202120202019201820172016201520142013
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
0.60%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.


-14.00%-12.00%-10.00%-8.00%-6.00%-4.00%-2.00%0.00%JuneJulyAugustSeptemberOctoberNovember
-2.95%
-0.94%
FAFFX
QQQ

Volatility

FAFFX vs. QQQ - Volatility Comparison

The current volatility for Fidelity Advisor Freedom 2040 Fund Class A (FAFFX) is 2.93%, while Invesco QQQ (QQQ) has a volatility of 5.35%. 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.


2.00%4.00%6.00%8.00%JuneJulyAugustSeptemberOctoberNovember
2.93%
5.35%
FAFFX
QQQ
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Disclaimer

The information contained herein does not constitute investment advice and made available for educational purposes only. Prices and returns on equities are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling.

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