MBS vs QQQ
MBS vs QQQ
Angel Oak Mortgage-Backed Securities 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 | MBS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.18% | |
| AUM | $148M | $455.8B | |
| Dividend Yield | 5.12% | 0.41% | |
| Holdings | 126 | 108 | |
| YTD Return | +0.32% | +18.20% | |
| 1Y Return | +3.95% | +27.63% | |
| 3Y Return (annualized) | - | +25.54% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 4.6% | 30.6% | |
| Max Drawdown | -4.1% | -83.0% | |
| Fund Family | Angel Oak Capital Advisors | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 20, 2024 | Mar 10, 1999 |
MBS vs QQQ Performance
Angel Oak Mortgage-Backed Securities ETF (MBS) is a ETF from Angel Oak Capital Advisors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MBS returned +3.95% while QQQ returned +27.63%. Year to date, MBS is up 0.32% versus a gain of 18.20% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% 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 -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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
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 5.12% against 0.41% for QQQ.
Holdings Overlap
MBS and QQQ share 0 holdings out of 121 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, MBS or QQQ?
MBS has an expense ratio of 0.49% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, MBS or QQQ?
Over the past year MBS returned +3.95% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), MBS annualized +5.73% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, MBS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.6% for MBS. Worst drawdown: MBS -4.1% vs QQQ -83.0%.
Should I hold both MBS and QQQ?
MBS and QQQ have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MBS and QQQ?
MBS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 121 unique securities.
Which pays a higher dividend, MBS or QQQ?
MBS yields 5.12% while QQQ yields 0.41%, so MBS currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.