MCSE vs QQQ
Franklin Sustainable International Equity 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 108 holdings.
Side-by-Side Comparison
| Metric | MCSE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.59% | 0.18% | |
| AUM | $3M | $496.3B | |
| Dividend Yield | 3.77% | 0.44% | |
| Holdings | 28 | 108 | |
| YTD Return | -0.63% | +17.07% | |
| 1Y Return | +3.20% | +26.39% | |
| 3Y Return (annualized) | +1.38% | +26.08% | |
| 5Y Return (annualized) | - | +15.18% | |
| Volatility (annualized) | 19.2% | 30.6% | |
| Max Drawdown | -25.9% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 31, 2022 | Mar 10, 1999 |
MCSE vs QQQ Performance
Franklin Sustainable International Equity ETF (MCSE) is a ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MCSE returned +3.20% while QQQ returned +26.39%. Year to date, MCSE is down 0.63% versus a gain of 17.07% for QQQ.
Over three years, MCSE compounded at +1.38% per year against +26.08% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.05% annualized vs +6.41%. 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 19.2% for MCSE. 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 -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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
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 0.44% for QQQ.
Holdings Overlap
MCSE and QQQ share 1 holdings out of 127 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MCSE | Weight in QQQ | Difference |
|---|---|---|---|
| LIN | 4.82% | 1.00% | 3.82% |
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. On a $10,000 investment, that is $41 per year of difference.
Which performed better, MCSE or QQQ?
Over the past year MCSE returned +3.20% vs +26.39% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), MCSE annualized +6.41% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, MCSE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.2% for MCSE. Worst drawdown: MCSE -25.9% vs QQQ -83.0%.
Should I hold both MCSE and QQQ?
MCSE and QQQ have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MCSE and QQQ?
MCSE and QQQ share 1 common holdings with a 1.0% weight overlap. Combined, they hold 127 unique securities.
Which pays a higher dividend, MCSE or QQQ?
MCSE yields 3.77% while QQQ yields 0.44%, so MCSE currently pays the higher dividend yield.
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