MDY vs QQQ
State Street SPDR S&P MIDCAP 400 ETF Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. MDY offers more diversification with 401 holdings.
Side-by-Side Comparison
| Metric | MDY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.23% | 0.18% | |
| AUM | $27.5B | $496.3B | |
| Dividend Yield | 1.02% | 0.44% | |
| Holdings | 401 | 108 | |
| YTD Return | +14.46% | +16.23% | |
| 1Y Return | +21.35% | +26.23% | |
| 3Y Return (annualized) | +15.24% | +25.75% | |
| 5Y Return (annualized) | +8.69% | +14.78% | |
| Volatility (annualized) | 17.9% | 30.6% | |
| Max Drawdown | -56.3% | -83.0% | |
| Fund Family | SPDR State Street Global Advisors | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 4, 1995 | Mar 10, 1999 |
MDY vs QQQ Performance
State Street SPDR S&P MIDCAP 400 ETF Trust (MDY) is a ETF from SPDR State Street Global Advisors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MDY returned +21.35% while QQQ returned +26.23%. Year to date, MDY is up 14.46% versus a gain of 16.23% for QQQ.
Over three years, MDY compounded at +15.24% per year against +25.75% for QQQ; over five years the annualized figures are +8.69% and +14.78% respectively. Across the full 27-year window we track, QQQ has the edge at +13.02% annualized vs +9.70%. 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 17.9% for MDY. 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 -56.3% for MDY 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MDY charges 0.23% per year while QQQ charges 0.18%. On a $10,000 position that is $23 vs $18 annually, a gap of $5 per year that compounds over a long holding period. On income, MDY currently yields 1.02% against 0.44% for QQQ.
Holdings Overlap
MDY and QQQ share 0 holdings out of 502 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MDY or QQQ?
MDY has an expense ratio of 0.23% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, MDY or QQQ?
Over the past year MDY returned +21.35% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), MDY annualized +9.70% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, MDY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.9% for MDY. Worst drawdown: MDY -56.3% vs QQQ -83.0%.
Should I hold both MDY and QQQ?
MDY and QQQ have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MDY and QQQ?
MDY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 502 unique securities.
Which pays a higher dividend, MDY or QQQ?
MDY yields 1.02% while QQQ yields 0.44%, so MDY currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.