MCDS vs QQQ
JPMorgan Fundamental Data Science Mid Core ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. MCDS offers more diversification with 186 holdings.
Side-by-Side Comparison
| Metric | MCDS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $8M | $455.8B | |
| Dividend Yield | 1.28% | 0.41% | |
| Holdings | 189 | 108 | |
| YTD Return | +18.72% | +18.31% | |
| 1Y Return | +24.94% | +25.37% | |
| 3Y Return (annualized) | - | +25.79% | |
| 5Y Return (annualized) | - | +15.20% | |
| Volatility (annualized) | 13.0% | 30.6% | |
| Max Drawdown | -22.5% | -83.0% | |
| Fund Family | J.P. Morgan Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 7, 2024 | Mar 10, 1999 |
MCDS vs QQQ Performance
JPMorgan Fundamental Data Science Mid Core ETF (MCDS) is a ETF from J.P. Morgan Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MCDS returned +24.94% while QQQ returned +25.37%. Year to date, MCDS is up 18.72% versus a gain of 18.31% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 13.0% for MCDS. 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 -22.5% for MCDS 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MCDS charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, MCDS currently yields 1.28% against 0.41% for QQQ.
Holdings Overlap
MCDS and QQQ share 17 holdings out of 272 unique holdings combined, representing a 4.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MCDS or QQQ?
MCDS has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, MCDS or QQQ?
Over the past year MCDS returned +24.94% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), MCDS annualized +18.28% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, MCDS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.0% for MCDS. Worst drawdown: MCDS -22.5% vs QQQ -83.0%.
Should I hold both MCDS and QQQ?
MCDS and QQQ have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MCDS and QQQ?
MCDS and QQQ share 17 common holdings with a 4.7% weight overlap. Combined, they hold 272 unique securities.
Which pays a higher dividend, MCDS or QQQ?
MCDS yields 1.28% while QQQ yields 0.41%, so MCDS currently pays the higher dividend yield.
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