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Security Comparison

FXAIX vs QQQ: Which Is the Better Pick in 2026?

A head-to-head comparison of Fidelity 500 Index Fund and Invesco QQQ Trust covering yield, cost, risk, and income potential.

Data updated August 13, 2026

Best for

  • FXAIXInvestors who want higher current income (1.03% vs 0.44% for QQQ).
  • QQQInvestors who want a growth tilt and can accept bigger swings for higher upside.

Jump to the side-by-side numbers

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricFXAIXQQQ
Full nameFidelity 500 Index FundInvesco QQQ Trust
IssuerFidelity InvestmentsInvesco
Last Close$269.58 as of August 13, 2026$723.70 as of August 13, 2026
Distribution yield1.03%0.44%
Distribution Safety Score™ 9997
Expense ratio0.49%0.18%
AUM$833B$479B
Distribution frequencyQuarterlyQuarterly
Underlying index—Nasdaq-100 Index
Objective—Track the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks.
Asset classEquityEquity
Inception date02/17/198803/10/1999
Beta1.01.26
Last dividend$0.6950$0.7941
Ex-dividend date07/10/202612/21/2026

Bottom lineChoose FXAIX if you want higher current income (1.03% vs 0.44% for QQQ). Choose QQQ if you want a growth tilt and can accept bigger swings for higher upside.

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Income calculator

See how much monthly income a hypothetical investment would generate in each security at current yields.

Invesco
ETFs248
Total AUM$976B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Invesco is a major ETF provider known for offering a comprehensive lineup spanning multiple asset classes and investment strategies. The company specializes in income-focused products including dividend, covered call, and bond strategies, while also maintaining broad exposure across equity, factor-based, thematic, and ESG investing themes. Invesco's portfolio ranges from index-tracking funds to alternatives and specialized offerings like digital assets and BulletShares, making it one of the more expansive ETF families available to investors.

See our curated list of related YouTube videos on QQQ.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

FXAIX has lagged QQQ over the trailing twelve months, posting a 23.08% total return against 26.94%. The lead holds up over 10 years too: QQQ has compounded at 20.82% a year, against 15.45% for FXAIX. FXAIX has been the steadier holding, though — annualized volatility of 15.1% against 20.5% for QQQ. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince May 2011Volatility Sharpe Sortino Max drawdown
FXAIX13.78%23.08%21.88%13.50%15.45%14.20%15.1%1.021.48-18.5%
QQQ18.31%26.94%25.79%15.28%20.82%18.86%20.5%0.911.30-22.8%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 12, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since May 2011” measures every fund from May 10, 2011 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

FXAIX (Fidelity 500 Index Fund) is a mutual fund, while QQQ (Invesco QQQ Trust) is an ETF — they take fundamentally different approaches.

FXAIX offers the higher yield at 1.03% vs 0.44% for QQQ. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

QQQ is cheaper with an expense ratio of 0.18% compared to 0.49%.

FXAIX is the larger fund by assets ($833B), which generally means tighter spreads and better liquidity.

Who should choose each?

Choose FXAIX

Fidelity 500 Index Fund

  • Want higher current income — FXAIX yields 1.03% vs 0.44% for QQQ.
  • Want broad equity exposure.
  • Prefer lower volatility — a beta of 1.0 vs 1.3 for QQQ.

Choose QQQ

Invesco QQQ Trust

  • Want a growth tilt and can accept larger swings for more upside.
  • Want to keep costs low — a 0.18% expense ratio vs 0.49% for FXAIX.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, FXAIX would generate roughly $8.58/month, while QQQ would produce $3.67/month, at current distribution rates. Both pay quarterly distributions.

FXAIX yield1.03%
QQQ yield0.44%
Monthly diff on $10K$4.92

Cost & efficiency

Over 10 years on $10,000, FXAIX would cost approximately $490 in fees vs $180 for QQQ (simplified, not compounded). The $310.00 difference may be offset by yield or performance.

FXAIX ER0.49%
QQQ ER0.18%

Strategy & risk

FXAIX is a mutual fund, while QQQ tracks Nasdaq-100 Index with a growth approach. Beta is 1.0 for FXAIX and 1.26 for QQQ, indicating FXAIX is less volatile relative to the market.

FXAIX beta1.0
QQQ beta1.26

Fund details

FXAIX is managed by Fidelity Investments (launched 02/17/1988) with $833B in assets. QQQ is managed by Invesco (launched 03/10/1999) with $479B in assets.

FXAIX AUM$833B
QQQ AUM$479B
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Frequently asked questions

What is the current distribution yield for FXAIX and QQQ?

FXAIX currently distributes 1.03% and QQQ 0.44%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is FXAIX or QQQ better for dividend income?

It depends on your goals. FXAIX currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between FXAIX and QQQ?

FXAIX (Fidelity 500 Index Fund) is a mutual fund, while QQQ (Invesco QQQ Trust) tracks Nasdaq-100 Index with a growth approach. They are issued by Fidelity Investments and Invesco respectively.

Can I hold both FXAIX and QQQ?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is FXAIX or QQQ safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: FXAIX scores 99, QQQ scores 97. Neither has a clear safety edge on that measure. FXAIX has also shown lower price volatility (beta 1.00 vs 1.26 for QQQ). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, FXAIX or QQQ?

FXAIX has an expense ratio of 0.49% while QQQ charges 0.18%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in FXAIX vs QQQ generate?

At current rates, $10,000 in FXAIX would generate roughly $8.58 per month ($103.00 annually). The same in QQQ would produce about $3.67 per month ($44.00 annually).

Which has performed better historically, FXAIX or QQQ?

FXAIX has lagged QQQ over the trailing twelve months, posting a 23.08% total return against 26.94%. The lead holds up over 10 years too: QQQ has compounded at 20.82% a year, against 15.45% for FXAIX. FXAIX has been the steadier holding, though — annualized volatility of 15.1% against 20.5% for QQQ. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

FXAIX vs QQQ — at a glance

Generated August 8, 2026.

Overview

FXAIX is a mutual fund that tracks the S&P 500, giving you exposure to 500 of the largest U.S. companies weighted by market cap. QQQ is an ETF that tracks the Nasdaq-100, capturing 100 of the largest non-financial stocks on the Nasdaq exchange. The key difference: FXAIX is broad market exposure with a 1.0 beta; QQQ is concentrated in tech and growth stocks with a 1.24 beta, meaning it amplifies both gains and losses relative to the broader market.

How they differ

The biggest distinction is composition. FXAIX holds the full S&P 500 across all sectors—financials, industrials, consumer goods, healthcare—while QQQ excludes financial companies and concentrates on Nasdaq-listed large-caps, which skews heavily toward technology and growth. QQQ's 1.24 beta tells the story: it swings harder than the overall market in both directions.

Fees and yield differ too. QQQ costs 0.18% annually versus FXAIX's 0.49%, a meaningful gap for long-term holders. FXAIX yields 1.03%, more than double QQQ's 0.44%, reflecting the S&P 500's inclusion of higher-dividend sectors like utilities and financials. Both distribute quarterly. QQQ has $479B in AUM and uses an ETF structure; FXAIX is a mutual fund with $833B in assets and has been operating since 1988, predating QQQ by over a decade.

Who each is best for

FXAIX: Fits investors seeking broad U.S. equity exposure with lower turnover expectations and a preference for mutual fund mechanics, particularly those who value lower-volatility, diversified sector participation.

QQQ: Designed for investors comfortable with concentration in technology and growth stocks and willing to accept higher volatility in exchange for exposure to companies that have driven market gains in recent years.

Key risks to know

  • Concentration in technology and growth. QQQ's Nasdaq-100 composition means meaningful exposure to a narrower set of sectors compared to FXAIX's S&P 500 breadth. If tech underperforms or faces regulatory headwinds, QQQ will likely lag more sharply.
  • Higher volatility and drawdown severity. QQQ's 1.24 beta means declines tend to be steeper. During market corrections, the amplified downside can be material for investors with shorter time horizons or lower risk tolerance.
  • Sector overlap and correlated holdings. Both funds own many of the same mega-cap technology stocks (e.g., Apple, Microsoft, Nvidia). Holdings concentration varies, but overlap is significant; verify your total exposure if holding both.
  • Distribution yield differences. FXAIX's higher yield reflects diversification across dividend-paying sectors; QQQ's lower yield reflects growth-stock positioning with less emphasis on income. Reinvestment patterns and tax treatment will differ accordingly.

Bottom line

If you want broad market exposure with lower volatility and higher dividend income, FXAIX's S&P 500 tracking stands out; if you're willing to concentrate on growth and tech and can tolerate swings, QQQ's lower fee and Nasdaq-100 exposure may appeal. Both are low-cost index vehicles with decades of track records. Past performance doesn't predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Dividend growth vs. high yield Yield on cost, explained How expense ratios eat returns

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