QQQ vs. FNMA

Last updated Jul 21, 2026

QQQ (Invesco QQQ ETF) is Nasdaq-100 fund tracking the NASDAQ-100 Index, while FNMA (Federal National Mortgage Association) is a stock. Over the past 10 years, QQQ returned 20.72%/yr vs 12.17%/yr for FNMA. At a 0.24 correlation, their price movements are largely independent.

Performance

QQQ vs. FNMA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco QQQ ETF (QQQ) and Federal National Mortgage Association (FNMA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QQQ achieves a 13.58% return, which is significantly higher than FNMA's -42.12% return. Over the past 10 years, QQQ has outperformed FNMA with an annualized return of 20.72%, while FNMA has yielded a comparatively lower 12.17% annualized return.

QQQ

• 1D: 0.10%
• 1M: -5.91%
• 6M: 12.30%
• YTD: 13.58%
• 1Y: 24.61%
• 3Y*: 23.54%
• 5Y*: 14.68%
• 10Y*: 20.72%
• ALL TIME*: 10.70%

FNMA

• 1D: 3.16%
• 1M: -2.36%
• 6M: -27.03%
• YTD: -42.12%
• 1Y: -27.11%
• 3Y*: 137.77%
• 5Y*: 35.69%
• 10Y*: 12.17%
• ALL TIME*: 4.80%

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

QQQ vs. FNMA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QQQ Invesco QQQ ETF	13.58%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%
FNMA Federal National Mortgage Association	-42.12%	227.13%	206.54%	202.77%	-56.90%	-65.69%	-23.40%	194.34%	-60.00%	-32.05%

Correlation

The correlation between QQQ and FNMA is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.19
Correlation (3Y) Calculated over the trailing 3-year period	0.19
Correlation (5Y) Calculated over the trailing 5-year period	0.22
Correlation (10Y) Calculated over the trailing 10-year period	0.19
Correlation (All Time) Calculated using the full available price history since Mar 10, 1999	0.24

Return for Risk

QQQ vs. FNMA — Risk / Return Rank

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

QQQ

QQQ Risk / Return Rank: 51
QQQ Sharpe Ratio Rank: 51
QQQ Sortino Ratio Rank: 47
QQQ Omega Ratio Rank: 48
QQQ Calmar Ratio Rank: 54
QQQ Martin Ratio Rank: 57

FNMA

FNMA Risk / Return Rank: 35
FNMA Sharpe Ratio Rank: 33
FNMA Sortino Ratio Rank: 39
FNMA Omega Ratio Rank: 38
FNMA Calmar Ratio Rank: 32
FNMA Martin Ratio Rank: 33

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.

QQQ vs. FNMA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ ETF (QQQ) and Federal National Mortgage Association (FNMA). 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.

	QQQ	FNMA	Difference
Sharpe ratio: Return per unit of total volatility	1.32	-0.29	+1.61
Sortino ratio: Return per unit of downside risk	1.83	0.18	+1.64
Omega ratio: Gain probability vs. loss probability	1.23	1.02	+0.21
Calmar ratio: Return relative to maximum drawdown	2.07	-0.39	+2.46
Martin ratio: Return relative to average drawdown	7.22	-0.66	+7.88

QQQ vs. FNMA - Sharpe Ratio Comparison

The current QQQ Sharpe Ratio is 1.32, which is higher than the FNMA Sharpe Ratio of -0.29. The chart below compares the historical Sharpe Ratios of QQQ and FNMA, 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

QQQ vs. FNMA - Drawdown Comparison

The maximum QQQ drawdown since its inception was -82.97%, smaller than the maximum FNMA drawdown of -99.74%. Use the drawdown chart below to compare losses from any high point for QQQ and FNMA.

Drawdown Indicators

	QQQ	FNMA	Difference
Max Drawdown Largest peak-to-trough decline	-82.97%	-99.74%	+16.77%
Max Drawdown (1Y) Largest decline over 1 year	-11.96%	-69.76%	+57.80%
Max Drawdown (3Y) Largest decline over 3 years	-22.77%	-69.76%	+46.99%
Max Drawdown (5Y) Largest decline over 5 years	-35.12%	-72.92%	+37.80%
Max Drawdown (10Y) Largest decline over 10 years	-35.12%	-92.13%	+57.01%
Current Drawdown Current decline from peak	-6.61%	-91.52%	+84.91%
Average Drawdown Average peak-to-trough decline	-32.65%	-46.27%	+13.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.42%	41.45%	-38.03%

Volatility

QQQ vs. FNMA - Volatility Comparison

The current volatility for Invesco QQQ ETF (QQQ) is 7.41%, while Federal National Mortgage Association (FNMA) has a volatility of 20.09%. This indicates that QQQ experiences smaller price fluctuations and is considered to be less risky than FNMA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QQQ	FNMA	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.41%	20.09%	-12.68%
Volatility (6M) Calculated over the trailing 6-month period	15.55%	67.69%	-52.14%
Volatility (1Y) Calculated over the trailing 1-year period	18.78%	95.25%	-76.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.81%	90.78%	-67.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.45%	82.10%	-59.65%

Dividends

QQQ vs. FNMA - Dividend Comparison

QQQ's dividend yield for the trailing twelve months is around 0.44%, while FNMA has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNMA Federal National Mortgage Association	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
QQQ Invesco QQQ ETF	0.44%	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 QQQ and FNMA in my portfolio?

QQQ and FNMA have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QQQ or FNMA?

FNMA has higher volatility (20.09%) compared to QQQ (7.41%). In terms of maximum drawdown, QQQ dropped -82.97% vs FNMA's -99.74%.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (1.32 vs -0.29), 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.