MCSE vs QQQ
Franklin Sustainable International Equity ETF vs Invesco QQQ Trust, Series 1
Which is better, MCSE or QQQ?
Mid Cap Growth against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 51.7%.
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 | MCSE | QQQ |
|---|---|---|
| Expense Ratio | 0.59% | 0.18%Best |
| AUM | $3M | $498.6B |
| Dividend Yield | 3.77% | 0.42% |
| Holdings | 28 | 321 |
| Volatility (annualized) | 19.2% | 16.4%Best |
| Max Drawdown | -25.9% | -22.8%Best |
| $10,000 over 3.2 years | $12,200 | $22,842Best |
| Top 10 Weight | 51.7% | 47.2%Best |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Mid Cap Growth | Large Cap Growth |
| Inception | Oct 31, 2022 | Mar 10, 1999 |
Not shown on this pair: YTD Return, 1Y Return, 3Y Return (annualized), 5Y Return (annualized).
The two price series end 266 days apart, so a return over any period would be measuring two different stretches of market. Those rows are withheld. MCSE has data through Jan 8, 2026 and QQQ through Oct 1, 2026.
Volatility and max drawdown, and the $10,000 over 3.2 years row, are measured over the window both funds cover: Oct 31, 2022 to Jan 8, 2026 (3.2 years).
Risk: Volatility and Drawdowns
MCSE has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 16.4% for QQQ. 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 -25.9% for MCSE 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 0.66. They move together some of the time, and apart the rest.
Fees and Cost Over Time
MCSE charges 0.59% per year while QQQ charges 0.18%. On a $10,000 position that is $59 vs $18 annually, a gap of $41 per year that compounds over a long holding period. On income, MCSE currently yields 3.77% against 0.42% for QQQ.
Holdings Overlap
10.5% of MCSE's money is in holdings QQQ also owns. 1.6% of QQQ's money is in holdings MCSE also owns.
MCSE and QQQ share little of their money.
The two holdings books were reported 291 days apart, MCSE as of Nov 28, 2025 and QQQ as of Sep 15, 2026, so some of the difference between them is the time between the two reports rather than the funds.
2 positions in common, counted across the 26 positions we hold weights for in MCSE and 102 in QQQ, against full books of 28 and 321.
What only one of them owns
Our book lists 95 positions for QQQ that do not appear in our book for MCSE (96.8% of the fund), and 2 for MCSE that do not appear in QQQ (9.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of MCSE 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, MCSE or QQQ?
MCSE has an expense ratio of 0.59% while QQQ charges 0.18%. QQQ is the cheaper option, by $41 a year on a $10,000 investment.
Which is riskier, MCSE or QQQ?
MCSE has been the more volatile fund at 19.2% annualized versus 16.4% for QQQ. Worst drawdown: MCSE -25.9% vs QQQ -22.8%.
Should I hold both MCSE and QQQ?
MCSE and QQQ have a monthly-return correlation of 0.66, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between MCSE and QQQ?
10.5% of MCSE's money is in holdings QQQ also owns. 1.6% of QQQ's is in holdings MCSE also owns. They hold 2 positions in common, counted across the 26 positions we hold weights for in MCSE and 102 in QQQ.
Which pays a higher dividend, MCSE or QQQ?
MCSE yields 3.77% while QQQ yields 0.42%, so MCSE currently pays the higher dividend yield.
Is QQQ better than MCSE?
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 51.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.