MFDX vs QQQ
PIMCO RAFI Dynamic Multi-Factor International Equity ETF vs Invesco QQQ Trust, Series 1
Which is better, MFDX or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
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 | MFDX | QQQ |
|---|---|---|
| Expense Ratio | 0.39% | 0.18%Best |
| AUM | $466M | $483.5B |
| Dividend Yield | 2.84% | 0.44% |
| Holdings | 1,300 | 107 |
| YTD Return | +10.84% | +15.86%Best |
| 1Y Return | +17.99% | +22.63%Best |
| 3Y Return (annualized) | +18.60% | +24.15%Best |
| 5Y Return (annualized) | +10.32% | +14.16%Best |
| Volatility (annualized) | 14.9%Best | 19.9% |
| Max Drawdown | -39.1% | -35.1%Best |
| $10,000 over 5 years | $16,341 | $19,390Best |
| Fund Family | PIMCO (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Aug 31, 2017 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 6, 2017 to Sep 10, 2026 (9 years).
MFDX vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9 years both funds cover.
MFDX vs QQQ Performance
PIMCO RAFI Dynamic Multi-Factor International Equity ETF (MFDX) is an ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year MFDX returned +17.99% while QQQ returned +22.63%. Year to date, MFDX is up 10.84% versus a gain of 15.86% for QQQ.
Over three years, MFDX compounded at +18.60% per year against +24.15% for QQQ; over five years the annualized figures are +10.32% and +14.16% respectively. Across the full 9-year window we track, QQQ has the edge at +19.67% annualized vs +7.96%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.9% compared with 14.9% for MFDX. 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 -39.1% for MFDX and -35.1% 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 0.65. They move together some of the time, and apart the rest.
Fees and Cost Over Time
MFDX charges 0.39% per year while QQQ charges 0.18%. On a $10,000 position that is $39 vs $18 annually, a gap of $21 per year that compounds over a long holding period. On income, MFDX currently yields 2.84% against 0.44% for QQQ.
Holdings Overlap
At least 1.1% of QQQ's money is in holdings MFDX also owns.
Stated as a floor: for MFDX, our book for it covers 79.6% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
QQQ and MFDX share little of their money.
3 positions in common, counted across the 950 positions we hold weights for in MFDX and 102 in QQQ, against full books of 1,300 and 107.
You are not choosing between two funds in isolation.
Whichever of MFDX 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, MFDX or QQQ?
MFDX has an expense ratio of 0.39% while QQQ charges 0.18%. QQQ is the cheaper option, by $21 a year on a $10,000 investment.
Which performed better, MFDX or QQQ?
Over the past year MFDX returned +17.99% vs +22.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), MFDX annualized +7.96% vs +19.67% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MFDX or QQQ?
QQQ has been the more volatile fund at 19.9% annualized versus 14.9% for MFDX. Worst drawdown: MFDX -39.1% vs QQQ -35.1%.
Should I hold both MFDX and QQQ?
MFDX and QQQ have a monthly-return correlation of 0.65, 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 MFDX and QQQ?
At least 1.1% of QQQ's money is in holdings MFDX also owns. Our book for MFDX is partial, so the real figure is this or higher. They hold 3 positions in common, counted across the 950 positions we hold weights for in MFDX and 102 in QQQ.
Which pays a higher dividend, MFDX or QQQ?
MFDX yields 2.84% while QQQ yields 0.44%, so MFDX currently pays the higher dividend yield.
Is QQQ better than MFDX?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.