FESM vs. QQQS

Last updated Jun 4, 2026

FESM (Fidelity Enhanced Small Cap ETF) and QQQS (Invesco NASDAQ Future Gen 200 ETF) are both Small Cap Blend Equities funds. FESM is actively managed, while QQQS is passively managed. Over the past year, FESM returned 46.73% vs 79.99% for QQQS. Their correlation of 0.89 suggests significant overlap in exposure. FESM charges 0.28%/yr vs 0.20%/yr for QQQS.

Performance

FESM vs. QQQS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Enhanced Small Cap ETF (FESM) and Invesco NASDAQ Future Gen 200 ETF (QQQS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FESM achieves a 19.64% return, which is significantly lower than QQQS's 27.27% return.

FESM

• 1D: -1.51%
• 1M: 3.13%
• YTD: 19.64%
• 6M: 19.11%
• 1Y: 46.73%
• 3Y*: —
• 5Y*: —
• 10Y*: —

QQQS

• 1D: -1.70%
• 1M: 5.91%
• YTD: 27.27%
• 6M: 27.40%
• 1Y: 79.99%
• 3Y*: 15.89%
• 5Y*: —
• 10Y*: —

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

FESM vs. QQQS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FESM Fidelity Enhanced Small Cap ETF	19.64%	17.88%	16.22%	12.19%
QQQS Invesco NASDAQ Future Gen 200 ETF	27.27%	23.03%	10.20%	17.26%

Correlation

The correlation between FESM and QQQS is 0.90, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.90
Correlation (All Time) Calculated using the full available price history since Nov 21, 2023	0.89

The correlation between FESM and QQQS has been stable across timeframes, ranging from 0.89 to 0.90 - a consistent structural relationship.

FESM vs. QQQS - Sectors Allocation Comparison

Sectors	FESM	QQQS
Technology	21.6%	42.1%
Industrials	19.1%	4.8%
Healthcare	15.7%	41.0%
Financial Services	14.8%	0.0%
Consumer Cyclical	7.4%	5.2%
Energy	7.2%	2.2%
Real Estate	4.2%	-
Basic Materials	3.5%	1.0%
Communication Services	3.1%	2.4%
Utilities	2.0%	-
Consumer Defensive	1.4%	1.4%

Return for Risk

FESM vs. QQQS — Risk / Return Rank

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

FESM

FESM Risk / Return Rank: 76
FESM Sharpe Ratio Rank: 75
FESM Sortino Ratio Rank: 72
FESM Omega Ratio Rank: 66
FESM Calmar Ratio Rank: 84
FESM Martin Ratio Rank: 82

QQQS

QQQS Risk / Return Rank: 85
QQQS Sharpe Ratio Rank: 88
QQQS Sortino Ratio Rank: 83
QQQS Omega Ratio Rank: 73
QQQS Calmar Ratio Rank: 91
QQQS Martin Ratio Rank: 88

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. QQQS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Enhanced Small Cap ETF (FESM) and Invesco NASDAQ Future Gen 200 ETF (QQQS). 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.

	FESM	QQQS	Difference
Sharpe ratio: Return per unit of total volatility	2.48	3.00	-0.52
Sortino ratio: Return per unit of downside risk	3.34	3.78	-0.44
Omega ratio: Gain probability vs. loss probability	1.41	1.44	-0.03
Calmar ratio: Return relative to maximum drawdown	4.61	5.90	-1.29
Martin ratio: Return relative to average drawdown	16.60	19.70	-3.10
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FESM vs. QQQS - Sharpe Ratio Comparison

The current FESM Sharpe Ratio is 2.48, which is comparable to the QQQS Sharpe Ratio of 3.00. The chart below compares the historical Sharpe Ratios of FESM and QQQS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FESM	QQQS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.48	3.00	-0.52
Sharpe Ratio (All Time) Calculated using the full available price history	1.29	0.63	+0.66

Drawdowns

FESM vs. QQQS - Drawdown Comparison

The maximum FESM drawdown since its inception was -26.93%, smaller than the maximum QQQS drawdown of -38.06%. Use the drawdown chart below to compare losses from any high point for FESM and QQQS.

Drawdown Indicators

	FESM	QQQS	Difference
Max Drawdown Largest peak-to-trough decline	-26.93%	-38.06%	+11.13%
Max Drawdown (1Y) Largest decline over 1 year	-10.18%	-13.63%	+3.45%
Max Drawdown (3Y) Largest decline over 3 years	—	-34.32%	—
Current Drawdown Current decline from peak	-1.59%	-2.55%	+0.96%
Average Drawdown Average peak-to-trough decline	-4.79%	-13.26%	+8.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.82%	4.07%	-1.25%

Volatility

FESM vs. QQQS - Volatility Comparison

The current volatility for Fidelity Enhanced Small Cap ETF (FESM) is 5.64%, while Invesco NASDAQ Future Gen 200 ETF (QQQS) has a volatility of 7.39%. This indicates that FESM experiences smaller price fluctuations and is considered to be less risky than QQQS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FESM	QQQS	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.64%	7.39%	-1.75%
Volatility (6M) Calculated over the trailing 6-month period	13.32%	18.49%	-5.17%
Volatility (1Y) Calculated over the trailing 1-year period	18.98%	26.90%	-7.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.26%	28.34%	-7.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.26%	28.34%	-7.08%

FESM vs. QQQS - Expense Ratio Comparison

FESM has a 0.28% expense ratio, which is higher than QQQS's 0.20% expense ratio.

Dividends

FESM vs. QQQS - Dividend Comparison

FESM's dividend yield for the trailing twelve months is around 0.53%, less than QQQS's 2.73% yield.

Position	TTM	2025	2024	2023	2022
FESM Fidelity Enhanced Small Cap ETF	0.53%	0.82%	1.08%	0.06%	0.00%
QQQS Invesco NASDAQ Future Gen 200 ETF	2.73%	3.48%	0.80%	0.68%	0.04%

Frequently Asked Questions

Can I hold both FESM and QQQS in my portfolio?

With a correlation of 0.90, FESM and QQQS move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FESM or QQQS?

QQQS has higher volatility (7.39%) compared to FESM (5.64%). In terms of maximum drawdown, FESM dropped -26.93% vs QQQS's -38.06%.

Which ETF is better, FESM or QQQS?

On 1-year performance, QQQS leads with 79.99% vs 46.73% for FESM. On fees, QQQS is cheaper at 0.20% per year. On volatility, FESM has been the lower-risk option at 5.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FESM or QQQS?

Over the 1-year period, QQQS has performed better with a 79.99% return vs 46.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FESM or QQQS?

QQQS is cheaper with a 0.20% expense ratio, compared with 0.28% for FESM.

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

QQQS has the higher dividend yield at 2.73%, compared with 0.53% for FESM.

What is the main difference between FESM and QQQS?

They also come from different issuers: Fidelity and Invesco. Their fees differ too: 0.28% for FESM and 0.20% for QQQS.

Which has better risk-adjusted returns?

QQQS currently has the higher Sharpe Ratio (3.00 vs 2.48), 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.