FFOLX vs. QQQ

Last updated Jun 24, 2026

FFOLX (Fidelity Freedom Index 2045 Fund Institutional Premium Class) and QQQ (Invesco QQQ ETF) are both funds - FFOLX is a Target Retirement Date fund managed by Fidelity, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Over the past 10 years, FFOLX returned 12.21%/yr vs 22.07%/yr for QQQ. Their correlation of 0.86 suggests significant overlap in exposure. FFOLX charges 0.08%/yr vs 0.18%/yr for QQQ.

Performance

FFOLX vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Freedom Index 2045 Fund Institutional Premium Class (FFOLX) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FFOLX achieves a 11.53% return, which is significantly lower than QQQ's 16.45% return. Over the past 10 years, FFOLX has underperformed QQQ with an annualized return of 12.21%, while QQQ has yielded a comparatively higher 22.07% annualized return.

FFOLX

• 1D: -0.17%
• 1M: 1.75%
• YTD: 11.53%
• 6M: 10.93%
• 1Y: 26.40%
• 3Y*: 18.89%
• 5Y*: 9.81%
• 10Y*: 12.21%

QQQ

• 1D: -3.29%
• 1M: -0.43%
• YTD: 16.45%
• 6M: 14.99%
• 1Y: 34.88%
• 3Y*: 26.05%
• 5Y*: 16.01%
• 10Y*: 22.07%

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

FFOLX vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FFOLX Fidelity Freedom Index 2045 Fund Institutional Premium Class	11.53%	21.44%	14.19%	19.95%	-18.18%	15.98%	16.51%	26.01%	-7.20%	20.57%
QQQ Invesco QQQ ETF	16.45%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between FFOLX and QQQ is 0.88, 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	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.86
Correlation (All Time) Calculated using the full available price history since Jun 29, 2015	0.86

The correlation between FFOLX and QQQ has been stable across timeframes, ranging from 0.86 to 0.88 - a consistent structural relationship.

Return for Risk

FFOLX vs. QQQ — Risk / Return Rank

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

FFOLX

FFOLX Risk / Return Rank: 71
FFOLX Sharpe Ratio Rank: 71
FFOLX Sortino Ratio Rank: 67
FFOLX Omega Ratio Rank: 68
FFOLX Calmar Ratio Rank: 71
FFOLX Martin Ratio Rank: 76

QQQ

QQQ Risk / Return Rank: 59
QQQ Sharpe Ratio Rank: 61
QQQ Sortino Ratio Rank: 55
QQQ Omega Ratio Rank: 58
QQQ Calmar Ratio Rank: 61
QQQ Martin Ratio Rank: 62

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.

FFOLX vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Freedom Index 2045 Fund Institutional Premium Class (FFOLX) and Invesco QQQ ETF (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.

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.

	FFOLX	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.26	1.95	+0.31
Sortino ratio: Return per unit of downside risk	3.10	2.57	+0.53
Omega ratio: Gain probability vs. loss probability	1.42	1.35	+0.07
Calmar ratio: Return relative to maximum drawdown	3.10	2.93	+0.18
Martin ratio: Return relative to average drawdown	13.34	10.86	+2.47

FFOLX vs. QQQ - Sharpe Ratio Comparison

The current FFOLX Sharpe Ratio is 2.26, which is comparable to the QQQ Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of FFOLX and QQQ, 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

FFOLX vs. QQQ - Drawdown Comparison

The maximum FFOLX drawdown since its inception was -30.72%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for FFOLX and QQQ.

Drawdown Indicators

	FFOLX	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-30.72%	-82.97%	+52.25%
Max Drawdown (1Y) Largest decline over 1 year	-8.87%	-11.96%	+3.09%
Max Drawdown (3Y) Largest decline over 3 years	-14.71%	-22.77%	+8.06%
Max Drawdown (5Y) Largest decline over 5 years	-26.18%	-35.12%	+8.94%
Max Drawdown (10Y) Largest decline over 10 years	-30.72%	-35.12%	+4.40%
Current Drawdown Current decline from peak	-0.64%	-4.25%	+3.61%
Average Drawdown Average peak-to-trough decline	-4.65%	-32.73%	+28.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.06%	3.22%	-1.16%

Volatility

FFOLX vs. QQQ - Volatility Comparison

The current volatility for Fidelity Freedom Index 2045 Fund Institutional Premium Class (FFOLX) is 4.90%, while Invesco QQQ ETF (QQQ) has a volatility of 9.17%. This indicates that FFOLX 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.

Volatility by Period

	FFOLX	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.90%	9.17%	-4.27%
Volatility (6M) Calculated over the trailing 6-month period	10.13%	14.57%	-4.44%
Volatility (1Y) Calculated over the trailing 1-year period	12.20%	17.96%	-5.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.49%	22.69%	-8.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.21%	22.42%	-7.21%

FFOLX vs. QQQ - Expense Ratio Comparison

FFOLX has a 0.08% expense ratio, which is lower than QQQ's 0.18% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FFOLX vs. QQQ - Dividend Comparison

FFOLX's dividend yield for the trailing twelve months is around 1.94%, more than QQQ's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FFOLX Fidelity Freedom Index 2045 Fund Institutional Premium Class	1.94%	2.06%	2.04%	1.98%	2.08%	2.03%	1.97%	14.93%	2.30%	1.94%	2.05%	2.02%
QQQ Invesco QQQ ETF	0.43%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both FFOLX and QQQ in my portfolio?

FFOLX and QQQ have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FFOLX or QQQ?

QQQ has higher volatility (9.17%) compared to FFOLX (4.90%). In terms of maximum drawdown, FFOLX dropped -30.72% vs QQQ's -82.97%.

Which has better risk-adjusted returns?

FFOLX currently has the higher Sharpe Ratio (2.26 vs 1.95), 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.