MMSC vs QQQ
First Trust Multi-Manager Small Cap Opportunities ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. MMSC delivered stronger 1-year returns. MMSC offers more diversification with 208 holdings.
Side-by-Side Comparison
| Metric | MMSC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.18% | |
| AUM | $51M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 202 | 108 | |
| YTD Return | +18.86% | +18.31% | |
| 1Y Return | +34.05% | +25.37% | |
| 3Y Return (annualized) | +21.62% | +25.79% | |
| 5Y Return (annualized) | - | +15.20% | |
| Volatility (annualized) | 21.6% | 30.6% | |
| Max Drawdown | -40.8% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 13, 2021 | Mar 10, 1999 |
MMSC vs QQQ Performance
First Trust Multi-Manager Small Cap Opportunities ETF (MMSC) 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 MMSC returned +34.05% while QQQ returned +25.37%. Year to date, MMSC is up 18.86% versus a gain of 18.31% for QQQ.
Over three years, MMSC compounded at +21.62% per year against +25.79% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.10% annualized vs +7.44%. 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 21.6% for MMSC. 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 -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 0.81. 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 0.41% for QQQ.
Holdings Overlap
MMSC and QQQ share 1 holdings out of 310 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MMSC | Weight in QQQ | Difference |
|---|---|---|---|
| LITE | 0.47% | 0.26% | 0.21% |
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. On a $10,000 investment, that is $77 per year of difference.
Which performed better, MMSC or QQQ?
Over the past year MMSC returned +34.05% vs +25.37% for QQQ, so MMSC leads on 1-year performance. Over the longest common window we track (5 years), MMSC annualized +7.44% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, MMSC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.6% for MMSC. Worst drawdown: MMSC -40.8% vs QQQ -83.0%.
Should I hold both MMSC and QQQ?
MMSC and QQQ have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MMSC and QQQ?
MMSC and QQQ share 1 common holdings with a 0.3% weight overlap. Combined, they hold 310 unique securities.
Which pays a higher dividend, MMSC or QQQ?
MMSC yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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