MDIV vs QQQ
First Trust Multi-Asset Diversified Income Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. MDIV offers more diversification with 117 holdings.
Side-by-Side Comparison
| Metric | MDIV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.71% | 0.18% | |
| AUM | $428M | $455.8B | |
| Dividend Yield | 6.13% | 0.41% | |
| Holdings | 125 | 108 | |
| YTD Return | +10.89% | +17.46% | |
| 1Y Return | +12.27% | +26.02% | |
| 3Y Return (annualized) | +10.81% | +25.51% | |
| 5Y Return (annualized) | +6.69% | +15.12% | |
| Volatility (annualized) | 13.6% | 30.6% | |
| Max Drawdown | -57.0% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Aug 13, 2012 | Mar 10, 1999 |
MDIV vs QQQ Performance
First Trust Multi-Asset Diversified Income Index Fund (MDIV) is a ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MDIV returned +12.27% while QQQ returned +26.02%. Year to date, MDIV is up 10.89% versus a gain of 17.46% for QQQ.
Over three years, MDIV compounded at +10.81% per year against +25.51% for QQQ; over five years the annualized figures are +6.69% and +15.12% respectively. Across the full 14-year window we track, QQQ has the edge at +13.08% annualized vs +1.15%. 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 13.6% for MDIV. 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 -57.0% for MDIV 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MDIV charges 0.71% per year while QQQ charges 0.18%. On a $10,000 position that is $71 vs $18 annually, a gap of $53 per year that compounds over a long holding period. On income, MDIV currently yields 6.13% against 0.41% for QQQ.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, MDIV or QQQ?
MDIV has an expense ratio of 0.71% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $53 per year of difference.
Which performed better, MDIV or QQQ?
Over the past year MDIV returned +12.27% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), MDIV annualized +1.15% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, MDIV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.6% for MDIV. Worst drawdown: MDIV -57.0% vs QQQ -83.0%.
Should I hold both MDIV and QQQ?
MDIV and QQQ have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MDIV and QQQ?
MDIV and QQQ share 2 common holdings with a 0.5% weight overlap. Combined, they hold 218 unique securities.
Which pays a higher dividend, MDIV or QQQ?
MDIV yields 6.13% while QQQ yields 0.41%, so MDIV currently pays the higher dividend yield.
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