MARB vs QQQ
First Trust Merger Arbitrage 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 | MARB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.69% | 0.18% | |
| AUM | $20M | $455.8B | |
| Dividend Yield | 2.98% | 0.41% | |
| Holdings | 30 | 108 | |
| YTD Return | +1.96% | +18.31% | |
| 1Y Return | +6.71% | +25.37% | |
| 3Y Return (annualized) | +4.28% | +25.79% | |
| 5Y Return (annualized) | +2.94% | +15.20% | |
| Volatility (annualized) | 3.5% | 30.6% | |
| Max Drawdown | -12.0% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Feb 4, 2020 | Mar 10, 1999 |
MARB vs QQQ Performance
First Trust Merger Arbitrage ETF (MARB) is a ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MARB returned +6.71% while QQQ returned +25.37%. Year to date, MARB is up 1.96% versus a gain of 18.31% for QQQ.
Over three years, MARB compounded at +4.28% per year against +25.79% for QQQ; over five years the annualized figures are +2.94% and +15.20% respectively. Across the full 6-year window we track, QQQ has the edge at +13.10% annualized vs +2.07%. 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 3.5% for MARB. 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 -12.0% for MARB 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 0.16. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MARB charges 1.69% per year while QQQ charges 0.18%. On a $10,000 position that is $169 vs $18 annually, a gap of $151 per year that compounds over a long holding period. On income, MARB currently yields 2.98% against 0.41% for QQQ.
Holdings Overlap
MARB and QQQ share 1 holdings out of 123 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MARB | Weight in QQQ | Difference |
|---|---|---|---|
| EA | 4.25% | 0.23% | 4.02% |
Frequently Asked Questions
Which is cheaper, MARB or QQQ?
MARB has an expense ratio of 1.69% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $151 per year of difference.
Which performed better, MARB or QQQ?
Over the past year MARB returned +6.71% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), MARB annualized +2.07% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, MARB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.5% for MARB. Worst drawdown: MARB -12.0% vs QQQ -83.0%.
Should I hold both MARB and QQQ?
MARB and QQQ have a monthly-return correlation of 0.16, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MARB and QQQ?
MARB and QQQ share 1 common holdings with a 0.2% weight overlap. Combined, they hold 123 unique securities.
Which pays a higher dividend, MARB or QQQ?
MARB yields 2.98% while QQQ yields 0.41%, so MARB currently pays the higher dividend yield.
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