MKTN vs QQQ
Federated Hermes MDT Market Neutral ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. MKTN offers more diversification with 387 holdings.
Side-by-Side Comparison
| Metric | MKTN | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.10% | 0.18% | |
| AUM | $121M | $496.3B | |
| Dividend Yield | 0.48% | 0.44% | |
| Holdings | 387 | 108 | |
| YTD Return | +6.87% | +16.64% | |
| 1Y Return | +9.93% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | - | 30.6% | |
| Max Drawdown | -4.1% | -83.0% | |
| Fund Family | Federated Hermes | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 24, 2025 | Mar 10, 1999 |
MKTN vs QQQ Performance
Federated Hermes MDT Market Neutral ETF (MKTN) is a ETF from Federated Hermes and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MKTN returned +9.93% while QQQ returned +27.27%. Year to date, MKTN is up 6.87% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
The deepest peak-to-trough decline in our data was -4.1% for MKTN and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
Fees and Cost Over Time
MKTN charges 2.10% per year while QQQ charges 0.18%. On a $10,000 position that is $210 vs $18 annually, a gap of $192 per year that compounds over a long holding period. On income, MKTN currently yields 0.48% against 0.44% for QQQ.
Holdings Overlap
MKTN and QQQ share 38 holdings out of 448 unique holdings combined, representing a 8.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MKTN or QQQ?
MKTN has an expense ratio of 2.10% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $192 per year of difference.
Which performed better, MKTN or QQQ?
Over the past year MKTN returned +9.93% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results.
What is the holdings overlap between MKTN and QQQ?
MKTN and QQQ share 38 common holdings with a 8.0% weight overlap. Combined, they hold 448 unique securities.
Which pays a higher dividend, MKTN or QQQ?
MKTN yields 0.48% while QQQ yields 0.44%, so MKTN currently pays the higher dividend yield.
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