MDCP vs QQQ

MDCP vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricMDCPQQQWinner
Expense Ratio0.55%0.18%
AUM$1M$496.3B
Dividend Yield0.28%0.44%
Holdings31108
YTD Return-3.33%+16.23%
1Y Return-1.11%+26.23%
3Y Return (annualized)+5.59%+25.75%
5Y Return (annualized)-+14.78%
Volatility (annualized)19.7%30.6%
Max Drawdown-27.5%-83.0%
Fund FamilyVictory Capital Management Inc.Invesco (US)
CategoryEquityEquity
InceptionOct 4, 2021Mar 10, 1999

MDCP vs QQQ Performance

VictoryShares THB Mid Cap ETF (MDCP) is a ETF from Victory Capital Management Inc. and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MDCP returned -1.11% while QQQ returned +26.23%. Year to date, MDCP is down 3.33% versus a gain of 16.23% for QQQ.

Over three years, MDCP compounded at +5.59% per year against +25.75% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.02% annualized vs +3.26%. 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 19.7% for MDCP. 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 -27.5% for MDCP 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 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

MDCP charges 0.55% per year while QQQ charges 0.18%. On a $10,000 position that is $55 vs $18 annually, a gap of $37 per year that compounds over a long holding period. On income, MDCP currently yields 0.28% against 0.44% for QQQ.

Frequently Asked Questions

Which is cheaper, MDCP or QQQ?

MDCP has an expense ratio of 0.55% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $37 per year of difference.

Which performed better, MDCP or QQQ?

Over the past year MDCP returned -1.11% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), MDCP annualized +3.26% vs +13.02% for QQQ. Past performance does not guarantee future results.

Which is riskier, MDCP or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 19.7% for MDCP. Worst drawdown: MDCP -27.5% vs QQQ -83.0%.

Should I hold both MDCP and QQQ?

MDCP and QQQ have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, MDCP or QQQ?

MDCP yields 0.28% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.

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