MRGR vs QQQ
ProShares Merger ETF 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 103 holdings.
Side-by-Side Comparison
| Metric | MRGR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.18% | |
| AUM | $16M | $455.8B | |
| Dividend Yield | 1.26% | 0.41% | |
| Holdings | 50 | 108 | |
| YTD Return | +2.21% | +19.68% | |
| 1Y Return | +7.17% | +26.75% | |
| 3Y Return (annualized) | +7.42% | +26.25% | |
| 5Y Return (annualized) | +3.78% | +15.39% | |
| Volatility (annualized) | 8.3% | 30.6% | |
| Max Drawdown | -22.5% | -83.0% | |
| Fund Family | ProShares | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 11, 2012 | Mar 10, 1999 |
MRGR vs QQQ Performance
ProShares Merger ETF (MRGR) is a ETF from ProShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MRGR returned +7.17% while QQQ returned +26.75%. Year to date, MRGR is up 2.21% versus a gain of 19.68% for QQQ.
Over three years, MRGR compounded at +7.42% per year against +26.25% for QQQ; over five years the annualized figures are +3.78% and +15.39% respectively. Across the full 14-year window we track, QQQ has the edge at +13.15% annualized vs +2.00%. 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 8.3% for MRGR. 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 -22.5% for MRGR 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MRGR charges 0.75% per year while QQQ charges 0.18%. On a $10,000 position that is $75 vs $18 annually, a gap of $57 per year that compounds over a long holding period. On income, MRGR currently yields 1.26% against 0.41% for QQQ.
Holdings Overlap
MRGR and QQQ share 1 holdings out of 142 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MRGR | Weight in QQQ | Difference |
|---|---|---|---|
| EA | 2.19% | 0.23% | 1.96% |
Frequently Asked Questions
Which is cheaper, MRGR or QQQ?
MRGR has an expense ratio of 0.75% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, MRGR or QQQ?
Over the past year MRGR returned +7.17% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), MRGR annualized +2.00% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, MRGR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.3% for MRGR. Worst drawdown: MRGR -22.5% vs QQQ -83.0%.
Should I hold both MRGR and QQQ?
MRGR and QQQ have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MRGR and QQQ?
MRGR and QQQ share 1 common holdings with a 0.2% weight overlap. Combined, they hold 142 unique securities.
Which pays a higher dividend, MRGR or QQQ?
MRGR yields 1.26% while QQQ yields 0.41%, so MRGR currently pays the higher dividend yield.
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