MBS vs QQQ
Angel Oak Mortgage-Backed Securities ETF vs Invesco QQQ Trust, Series 1
Which is better, MBS or QQQ?
QQQ has been ahead.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | MBS | QQQ |
|---|---|---|
| Expense Ratio | 0.49% | 0.18%Best |
| AUM | $153M | $483.5B |
| Dividend Yield | 5.60% | 0.44% |
| Holdings | 133 | 107 |
| YTD Return | -0.64% | +17.95%Best |
| 1Y Return | +1.26% | +21.77%Best |
| 3Y Return (annualized) | - | +25.63% |
| 5Y Return (annualized) | - | +15.24% |
| Volatility (annualized) | 4.6%Best | 17.3% |
| Max Drawdown | -4.1%Best | -22.8% |
| $10,000 over 2.6 years | $11,372 | $17,195Best |
| Fund Family | Angel Oak Capital Advisors | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Growth |
| Inception | Feb 20, 2024 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 2.6 years row, are measured over the window both funds cover: Feb 20, 2024 to Sep 18, 2026 (2.6 years).
MBS vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.6 years both funds cover.
MBS vs QQQ Performance
Angel Oak Mortgage-Backed Securities ETF (MBS) is an ETF from Angel Oak Capital Advisors and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year MBS returned +1.26% while QQQ returned +21.77%. Year to date, MBS is down 0.64% versus a gain of 17.95% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 4.6% for MBS. 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 -4.1% for MBS and -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.25. They move largely independently of each other.
Fees and Cost Over Time
MBS charges 0.49% per year while QQQ charges 0.18%. On a $10,000 position that is $49 vs $18 annually, a gap of $31 per year that compounds over a long holding period. On income, MBS currently yields 5.60% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 19 holdings in MBS and 102 in QQQ, totalling 26.9% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 19 positions we hold weights for in MBS and 102 in QQQ, against full books of 133 and 107.
You are not choosing between two funds in isolation.
Whichever of MBS and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MBS or QQQ?
MBS has an expense ratio of 0.49% while QQQ charges 0.18%. QQQ is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, MBS or QQQ?
Over the past year MBS returned +1.26% vs +21.77% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MBS or QQQ?
QQQ has been the more volatile fund at 17.3% annualized versus 4.6% for MBS. Worst drawdown: MBS -4.1% vs QQQ -22.8%.
Should I hold both MBS and QQQ?
MBS and QQQ have a monthly-return correlation of 0.25, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, MBS or QQQ?
MBS yields 5.60% while QQQ yields 0.44%, so MBS currently pays the higher dividend yield.
Is QQQ better than MBS?
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.