MISL vs QQQ
First Trust Indxx Aerospace & Defense 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 103 holdings.
Side-by-Side Comparison
| Metric | MISL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $750M | $455.8B | |
| Dividend Yield | 0.34% | 0.41% | |
| Holdings | 39 | 108 | |
| YTD Return | +8.18% | +18.31% | |
| 1Y Return | +23.40% | +25.37% | |
| 3Y Return (annualized) | +27.83% | +25.79% | |
| 5Y Return (annualized) | - | +15.20% | |
| Volatility (annualized) | 18.1% | 30.6% | |
| Max Drawdown | -17.9% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 25, 2022 | Mar 10, 1999 |
MISL vs QQQ Performance
First Trust Indxx Aerospace & Defense ETF (MISL) 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 MISL returned +23.40% while QQQ returned +25.37%. Year to date, MISL is up 8.18% versus a gain of 18.31% for QQQ.
Over three years, MISL compounded at +27.83% per year against +25.79% for QQQ. Across the full 4-year window we track, MISL has the edge at +25.56% annualized vs +13.10%. 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 18.1% for MISL. 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 -17.9% for MISL 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MISL charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, MISL currently yields 0.34% against 0.41% for QQQ.
Holdings Overlap
MISL and QQQ share 3 holdings out of 139 unique holdings combined, representing a 2.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MISL or QQQ?
MISL has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, MISL or QQQ?
Over the past year MISL returned +23.40% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), MISL annualized +25.56% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, MISL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.1% for MISL. Worst drawdown: MISL -17.9% vs QQQ -83.0%.
Should I hold both MISL and QQQ?
MISL and QQQ have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MISL and QQQ?
MISL and QQQ share 3 common holdings with a 2.7% weight overlap. Combined, they hold 139 unique securities.
Which pays a higher dividend, MISL or QQQ?
MISL yields 0.34% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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