MMSC vs QQQ
First Trust Multi-Manager Small Cap Opportunities ETF vs Invesco QQQ Trust, Series 1
Which is better, MMSC or QQQ?
Small Cap Growth against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. MMSC is less concentrated, with 14.0% of the fund in its ten largest positions against 46.5%.
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 | MMSC | QQQ |
|---|---|---|
| Expense Ratio | 0.95% | 0.18%Best |
| AUM | $52M | $483.5B |
| Dividend Yield | 0.00% | 0.44% |
| Holdings | 420 | 107 |
| YTD Return | +9.60% | +15.18%Best |
| 1Y Return | +17.88% | +19.65%Best |
| 3Y Return (annualized) | +19.31% | +24.60%Best |
| 5Y Return (annualized) | +5.54% | +13.94%Best |
| Volatility (annualized) | 21.4% | 20.9%Best |
| Max Drawdown | -40.8% | -35.1%Best |
| $10,000 over 5 years | $13,094 | $19,204Best |
| Top 10 Weight | 14.0%Best | 46.5% |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Small Cap Growth | Large Cap Growth |
| Inception | Oct 13, 2021 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Oct 14, 2021 to Sep 15, 2026 (4.9 years).
MMSC 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 4.9 years both funds cover.
MMSC vs QQQ Performance
First Trust Multi-Manager Small Cap Opportunities ETF (MMSC) is an ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year MMSC returned +17.88% while QQQ returned +19.65%. Year to date, MMSC is up 9.60% versus a gain of 15.18% for QQQ.
Over three years, MMSC compounded at +19.31% per year against +24.60% for QQQ; over five years the annualized figures are +5.54% and +13.94% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MMSC has been the more volatile fund, with annualized monthly volatility of 21.4% compared with 20.9% for QQQ. 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 -40.8% for MMSC 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MMSC charges 0.95% per year while QQQ charges 0.18%. On a $10,000 position that is $95 vs $18 annually, a gap of $77 per year that compounds over a long holding period. On income, MMSC currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 200 holdings in MMSC and 102 in QQQ, totalling 99.3% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 200 positions we hold weights for in MMSC and 102 in QQQ, against full books of 420 and 107.
What only one of them owns
Our book lists 96 positions for QQQ that do not appear in our book for MMSC (97.5% of the fund), and 187 for MMSC that do not appear in QQQ (93.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of MMSC 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, MMSC or QQQ?
MMSC has an expense ratio of 0.95% while QQQ charges 0.18%. QQQ is the cheaper option, by $77 a year on a $10,000 investment.
Which performed better, MMSC or QQQ?
Over the past year MMSC returned +17.88% vs +19.65% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MMSC or QQQ?
MMSC has been the more volatile fund at 21.4% annualized versus 20.9% for QQQ. Worst drawdown: MMSC -40.8% vs QQQ -35.1%.
Should I hold both MMSC and QQQ?
MMSC and QQQ have a monthly-return correlation of 0.81, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, MMSC or QQQ?
MMSC yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
Is QQQ better than MMSC?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. MMSC is less concentrated, with 14.0% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.