CTA vs QQQ
Simplify Managed Futures Strategy ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | CTA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.18% | |
| AUM | $1.5B | $455.8B | |
| Dividend Yield | 5.12% | 0.41% | |
| Holdings | 125 | 108 | |
| YTD Return | +3.47% | +17.46% | |
| 1Y Return | +6.40% | +26.02% | |
| 3Y Return (annualized) | +7.72% | +25.51% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 16.8% | 30.6% | |
| Max Drawdown | -20.8% | -83.0% | |
| Fund Family | Simplify Exchange Traded Funds | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Mar 1, 2022 | Mar 10, 1999 |
CTA vs QQQ Performance
Simplify Managed Futures Strategy ETF (CTA) is a ETF from Simplify Exchange Traded Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CTA returned +6.40% while QQQ returned +26.02%. Year to date, CTA is up 3.47% versus a gain of 17.46% for QQQ.
Over three years, CTA compounded at +7.72% per year against +25.51% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.08% annualized vs +7.60%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 16.8% for CTA. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -20.8% for CTA and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at -0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CTA charges 0.75% per year while QQQ charges 0.18%. On a $10,000 position that is $75 vs $18 annually, a gap of $57 per year that compounds over a long holding period. On income, CTA currently yields 5.12% against 0.41% for QQQ.
Holdings Overlap
CTA and QQQ share 0 holdings out of 104 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CTA or QQQ?
CTA has an expense ratio of 0.75% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, CTA or QQQ?
Over the past year CTA returned +6.40% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), CTA annualized +7.60% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, CTA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.8% for CTA. Worst drawdown: CTA -20.8% vs QQQ -83.0%.
Should I hold both CTA and QQQ?
CTA and QQQ have a monthly-return correlation of -0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CTA and QQQ?
CTA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, CTA or QQQ?
CTA yields 5.12% while QQQ yields 0.41%, so CTA currently pays the higher dividend yield.
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