MMD vs QQQ
NYLI MacKay DefinedTerm Muni Opportunities Fund 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 108 holdings.
Side-by-Side Comparison
| Metric | MMD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.33% | 0.18% | |
| AUM | $478M | $496.3B | |
| Dividend Yield | 4.73% | 0.44% | |
| Holdings | 93 | 108 | |
| YTD Return | +4.17% | +16.23% | |
| 1Y Return | +8.67% | +26.23% | |
| 3Y Return (annualized) | +1.27% | +25.75% | |
| 5Y Return (annualized) | -3.16% | +14.78% | |
| Volatility (annualized) | 11.2% | 30.6% | |
| Max Drawdown | -30.1% | -83.0% | |
| Fund Family | New York Life Investments | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 27, 2012 | Mar 10, 1999 |
MMD vs QQQ Performance
NYLI MacKay DefinedTerm Muni Opportunities Fund (MMD) is a ETF from New York Life Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MMD returned +8.67% while QQQ returned +26.23%. Year to date, MMD is up 4.17% versus a gain of 16.23% for QQQ.
Over three years, MMD compounded at +1.27% per year against +25.75% for QQQ; over five years the annualized figures are -3.16% and +14.78% respectively. Across the full 14-year window we track, QQQ has the edge at +13.02% annualized vs -0.06%. 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 11.2% for MMD. 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 -30.1% for MMD 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MMD charges 2.33% per year while QQQ charges 0.18%. On a $10,000 position that is $233 vs $18 annually, a gap of $215 per year that compounds over a long holding period. On income, MMD currently yields 4.73% against 0.44% for QQQ.
Holdings Overlap
MMD and QQQ share 0 holdings out of 153 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, MMD or QQQ?
MMD has an expense ratio of 2.33% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $215 per year of difference.
Which performed better, MMD or QQQ?
Over the past year MMD returned +8.67% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), MMD annualized -0.06% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, MMD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.2% for MMD. Worst drawdown: MMD -30.1% vs QQQ -83.0%.
Should I hold both MMD and QQQ?
MMD and QQQ have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MMD and QQQ?
MMD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 153 unique securities.
Which pays a higher dividend, MMD or QQQ?
MMD yields 4.73% while QQQ yields 0.44%, so MMD 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.