Founded in Atalanta in the early 1980s, Invesco is one of the most successful investment companies of recent times. The company, which attracted attention for a long time with its fixed-income investment instruments, now manages to make a name for itself with the fund options it creates.
Fidelity, on the other hand, is an extremely famous investment firm that has been in service since the 1950s and has an annual net income of nearly 4 billion dollars. FNXMX vs QQQ has been compared to Invesco a lot lately, despite having more stable clients.
In this article, we will try to compare two popular exchange-traded funds, Fidelity NASDAQ Composite Index Fund (FNCMX) and Invesco QQQ Trust (QQQ). First of all, we can say that our goal is the following: We try to offer stable funds to those who want to invest. Our primary goal is to provide objective information about the performance, assets, management, fees and market conditions of these funds. For this reason, we would like to pre-evaluate these funds that you are considering for your portfolio between 2024 and 2030. If you wish, you can take a detailed look at what other applications and options will be available.
General Information About FNCMX and QQQ
FNCMX and QQQ are exchange-traded fund options that provide investors with exposure to the US equity market, particularly the technology sector.
FNCMX is an index fund designed to track the performance of the NASDAQ Composite Index. At press time in September 2021, FNCMX had total assets of $10.3 billion and an expense ratio of 0.29%.
QQQ is an exchange-traded fund designed to track the performance of the NASDAQ-100 Index, which represents the 100 largest nonfinancial stocks on the NASDAQ Stock Market. As of September 2021, QQQ has total assets of $170.1 billion and an expense ratio of 0.20%.
Benchmarking Funds for Performance
When comparing the historical performance of FNCMX and QQQ, we will look at their returns, risks and volatility. In recent years, QQQ has outperformed FNCMX by focusing on the largest and fastest growing technology stocks that drive market earnings.
However, when it comes to the performance options at the forefront here, the following comparison should not be made. While some funds are at an advantageous point as investment options, some of them may experience fatigue and decline over the years.
Although past pricing is a guide for us, it is among the options that should not be considered too much in terms of the future.
It is also important to note that a focus on large-cap tech stocks can lead to potential risks associated with higher volatility and over-concentration in a single sector.
Funds Comparison of Assets
FNCMX and QQQ assets differ in terms of the indices they track. FNCMX provides broader exposure to the NASDAQ Composite Index, including stocks from various sectors, while QQQ focuses on the 100 largest non-financial stocks on the NASDAQ market, with an emphasis on the technology sector. QQQ’s core holdings include well-known tech giants such as Apple, Microsoft, Amazon and Alphabet, while FNCMX provides more diversified exposure to the NASDAQ Composite Index.
The choice between FNCMX and QQQ depends on investors’ priorities and investment objectives. FNCMX provides broader exposure to the NASDAQ Composite Index and offers a more diversified portfolio of stocks, while QQQ is more focused and emphasizes the technology sector.
In recent years, QQQ has outperformed due to its focus on the technology sector, but this comes with potential risks that investors should consider risk tolerance.
In terms of management fees, while QQQ has a lower expense ratio, it is managed by a reputable investment firm like Fidelity, where FNCMX is also managed.
First, investors need to make a choice between FNCMX and QQQ, depending on their priorities, risk tolerance and portfolio objectives. Before making a decision, investors are advised to carefully study the characteristics and performance history of both funds.