MMTM vs QQQ

MMTM vs QQQ

Which is better, MMTM or QQQ?

QQQ has been ahead.

MMTM has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. MMTM is less concentrated, with 40.6% of the fund in its ten largest positions against 46.5%.

Lower Fees: MMTMHigher Returns: QQQLess Concentrated: MMTM

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

MetricMMTMQQQ
Expense Ratio0.12%Best0.18%
AUM$160M$483.5B
Dividend Yield0.89%0.44%
Holdings1,472107
YTD Return+4.68%+16.87%Best
1Y Return+8.85%+22.98%Best
3Y Return (annualized)+18.82%+24.98%Best
5Y Return (annualized)+11.30%+14.39%Best
Volatility (annualized)14.4%Best17.5%
Max Drawdown-34.2%Best-35.1%
$10,000 over 5 years$17,080$19,586Best
Top 10 Weight40.6%Best46.5%
Fund FamilyState Street Investment ManagementInvesco (US)
CategoryEquityEquity
StyleLarge Cap GrowthLarge Cap Growth
InceptionOct 24, 2012Mar 10, 1999

Volatility and max drawdown are measured over the window both funds cover: Oct 25, 2012 to Sep 11, 2026 (13.9 years).

MMTM 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 13.9 years both funds cover.

MMTM vs QQQ Performance

State Street SPDR S&P 1500 Momentum Tilt ETF (MMTM) is an ETF from State Street Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year MMTM returned +8.85% while QQQ returned +22.98%. Year to date, MMTM is up 4.68% versus a gain of 16.87% for QQQ.

Over three years, MMTM compounded at +18.82% per year against +24.98% for QQQ; over five years the annualized figures are +11.30% and +14.39% respectively. Across the full 14-year window we track, QQQ has the edge at +19.12% annualized vs +12.94%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 17.5% compared with 14.4% for MMTM. 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 -34.2% for MMTM 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

MMTM charges 0.12% per year while QQQ charges 0.18%. On a $10,000 position that is $12 vs $18 annually, a gap of $6 per year that compounds over a long holding period. On income, MMTM currently yields 0.89% against 0.44% for QQQ.

Holdings Overlap

MMTM already in QQQ54.9%
QQQ already in MMTM93.8%

54.9% of MMTM's money is in holdings QQQ also owns. 93.8% of QQQ's money is in holdings MMTM also owns.

Most of QQQ is already inside MMTM. Owning both mostly buys the same companies twice.

86 positions in common, counted across the 1,467 positions we hold weights for in MMTM and 102 in QQQ, against full books of 1,472 and 107.

What only one of them owns

Our book lists 9 positions for QQQ that do not appear in our book for MMTM (3.2% of the fund), and 705 for MMTM that do not appear in QQQ (42.5%).

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.

Top Shared Holdings

StockWeight in MMTMWeight in QQQDifference
NVDANvidia Corp.10.00%8.44%1.56%
AAPLApple, Inc5.94%7.27%1.33%
GOOGLAlphabet A Usd 0.0015.41%3.36%2.05%
MUMicron Technology, Inc.2.95%4.43%1.48%
GOOGAlphabet Inc4.11%3.13%0.98%
AVGOBroadcom Inc3.98%3.16%0.82%
MSFTMicrosoft Corp 4.100 Feb 06 371.37%5.76%4.39%
AMZNAmazon.Com Inc2.44%4.67%2.23%
AMDAdvanced Micro Devices Inc.2.27%3.45%1.18%
TSLATesla Inc2.01%2.56%0.55%

93.8% of QQQ is already inside MMTM.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

MMTMQQQ

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Frequently Asked Questions

Which is cheaper, MMTM or QQQ?

MMTM has an expense ratio of 0.12% while QQQ charges 0.18%. MMTM is the cheaper option, by $6 a year on a $10,000 investment.

Which performed better, MMTM or QQQ?

Over the past year MMTM returned +8.85% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), MMTM annualized +12.94% vs +19.12% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, MMTM or QQQ?

QQQ has been the more volatile fund at 17.5% annualized versus 14.4% for MMTM. Worst drawdown: MMTM -34.2% vs QQQ -35.1%.

Should I hold both MMTM and QQQ?

MMTM and QQQ have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between MMTM and QQQ?

93.8% of QQQ's money is in holdings MMTM also owns. 93.8% of QQQ's is in holdings MMTM also owns. They hold 86 positions in common, counted across the 1,467 positions we hold weights for in MMTM and 102 in QQQ.

Which pays a higher dividend, MMTM or QQQ?

MMTM yields 0.89% while QQQ yields 0.44%, so MMTM currently pays the higher dividend yield.

Is QQQ better than MMTM?

MMTM has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. MMTM is less concentrated, with 40.6% 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.