FESM vs. QQQM

Last updated Jun 14, 2026

FESM (Fidelity Enhanced Small Cap ETF) and QQQM (Invesco NASDAQ 100 ETF) are both exchange-traded funds - FESM is a Small Cap Blend Equities fund actively managed by Fidelity, while QQQM is a Nasdaq-100 fund tracking the NASDAQ-100 Index. FESM is actively managed, while QQQM is passively managed. Over the past year, FESM returned 51.99% vs 37.64% for QQQM. A 0.67 correlation means they provide meaningful diversification when combined. FESM charges 0.28%/yr vs 0.15%/yr for QQQM.

Performance

FESM vs. QQQM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Enhanced Small Cap ETF (FESM) and Invesco NASDAQ 100 ETF (QQQM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FESM achieves a 22.93% return, which is significantly higher than QQQM's 17.59% return.

FESM

• 1D: 1.00%
• 1M: 6.63%
• YTD: 22.93%
• 6M: 20.18%
• 1Y: 51.99%
• 3Y*: —
• 5Y*: —
• 10Y*: —

QQQM

• 1D: 0.67%
• 1M: 1.75%
• YTD: 17.59%
• 6M: 17.91%
• 1Y: 37.64%
• 3Y*: 26.52%
• 5Y*: 16.94%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

FESM vs. QQQM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FESM Fidelity Enhanced Small Cap ETF	22.93%	17.88%	16.22%	12.09%
QQQM Invesco NASDAQ 100 ETF	17.59%	20.85%	25.68%	6.35%

Correlation

The correlation between FESM and QQQM is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.70
Correlation (All Time) Calculated using the full available price history since Nov 20, 2023	0.67

The correlation between FESM and QQQM has been stable across timeframes, ranging from 0.67 to 0.70 - a consistent structural relationship.

FESM vs. QQQM - Sectors Allocation Comparison

Sectors	FESM	QQQM
Technology	23.3%	58.7%
Industrials	18.5%	2.6%
Healthcare	16.1%	3.7%
Financial Services	14.6%	0.2%
Consumer Cyclical	7.7%	11.4%
Energy	5.9%	0.5%
Basic Materials	4.0%	1.0%
Real Estate	3.9%	0.1%
Communication Services	3.1%	14.3%
Utilities	1.8%	1.2%
Consumer Defensive	1.1%	6.4%

Return for Risk

FESM vs. QQQM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FESM

FESM Risk / Return Rank: 87
FESM Sharpe Ratio Rank: 88
FESM Sortino Ratio Rank: 86
FESM Omega Ratio Rank: 81
FESM Calmar Ratio Rank: 90
FESM Martin Ratio Rank: 89

QQQM

QQQM Risk / Return Rank: 72
QQQM Sharpe Ratio Rank: 76
QQQM Sortino Ratio Rank: 71
QQQM Omega Ratio Rank: 73
QQQM Calmar Ratio Rank: 69
QQQM Martin Ratio Rank: 70

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FESM vs. QQQM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Enhanced Small Cap ETF (FESM) and Invesco NASDAQ 100 ETF (QQQM). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FESM	QQQM	Difference
Sharpe ratio: Return per unit of total volatility	2.53	2.11	+0.43
Sortino ratio: Return per unit of downside risk	3.37	2.74	+0.63
Omega ratio: Gain probability vs. loss probability	1.41	1.37	+0.04
Calmar ratio: Return relative to maximum drawdown	4.85	3.02	+1.83
Martin ratio: Return relative to average drawdown	17.47	11.23	+6.24

FESM vs. QQQM - Sharpe Ratio Comparison

The current FESM Sharpe Ratio is 2.53, which is comparable to the QQQM Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of FESM and QQQM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FESM vs. QQQM - Drawdown Comparison

The maximum FESM drawdown since its inception was -26.93%, smaller than the maximum QQQM drawdown of -35.04%. Use the drawdown chart below to compare losses from any high point for FESM and QQQM.

Drawdown Indicators

	FESM	QQQM	Difference
Max Drawdown Largest peak-to-trough decline	-26.93%	-35.04%	+8.11%
Max Drawdown (1Y) Largest decline over 1 year	-10.18%	-11.96%	+1.78%
Max Drawdown (3Y) Largest decline over 3 years	—	-22.70%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-35.04%	—
Current Drawdown Current decline from peak	0.00%	-3.33%	+3.33%
Average Drawdown Average peak-to-trough decline	-4.75%	-8.23%	+3.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.83%	3.21%	-0.38%

Volatility

FESM vs. QQQM - Volatility Comparison

The current volatility for Fidelity Enhanced Small Cap ETF (FESM) is 6.80%, while Invesco NASDAQ 100 ETF (QQQM) has a volatility of 7.45%. This indicates that FESM experiences smaller price fluctuations and is considered to be less risky than QQQM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FESM	QQQM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.80%	7.45%	-0.65%
Volatility (6M) Calculated over the trailing 6-month period	14.05%	13.71%	+0.34%
Volatility (1Y) Calculated over the trailing 1-year period	19.50%	17.11%	+2.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.35%	22.40%	-1.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.35%	22.22%	-0.87%

FESM vs. QQQM - Expense Ratio Comparison

FESM has a 0.28% expense ratio, which is higher than QQQM's 0.15% expense ratio.

Dividends

FESM vs. QQQM - Dividend Comparison

FESM's dividend yield for the trailing twelve months is around 0.52%, more than QQQM's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
FESM Fidelity Enhanced Small Cap ETF	0.52%	0.82%	1.08%	0.06%	0.00%	0.00%	0.00%
QQQM Invesco NASDAQ 100 ETF	0.43%	0.50%	0.61%	0.65%	0.83%	0.40%	0.16%

Frequently Asked Questions

Can I hold both FESM and QQQM in my portfolio?

FESM and QQQM have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FESM or QQQM?

QQQM has higher volatility (7.45%) compared to FESM (6.80%). In terms of maximum drawdown, FESM dropped -26.93% vs QQQM's -35.04%.

Which ETF is better, FESM or QQQM?

On 1-year performance, FESM leads with 51.99% vs 37.64% for QQQM. On fees, QQQM is cheaper at 0.15% per year. On volatility, FESM has been the lower-risk option at 6.80%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FESM or QQQM?

Over the 1-year period, FESM has performed better with a 51.99% return vs 37.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FESM or QQQM?

QQQM is cheaper with a 0.15% expense ratio, compared with 0.28% for FESM.

Which ETF pays a higher dividend yield, FESM or QQQM?

FESM has the higher dividend yield at 0.52%, compared with 0.43% for QQQM.

What is the main difference between FESM and QQQM?

FESM is categorized as Small Cap Blend Equities, while QQQM is Nasdaq-100. They also come from different issuers: Fidelity and Invesco. Their fees differ too: 0.28% for FESM and 0.15% for QQQM.

Which has better risk-adjusted returns?

FESM currently has the higher Sharpe Ratio (2.53 vs 2.11), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.