MSFO vs QQQ
YieldMax Microsoft Option Income Strategy 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 | MSFO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.07% | 0.18% | |
| AUM | $100M | $455.8B | |
| Dividend Yield | 42.88% | 0.41% | |
| Holdings | 15 | 108 | |
| YTD Return | +3.94% | +17.46% | |
| 1Y Return | -2.82% | +26.02% | |
| 3Y Return (annualized) | +15.65% | +25.51% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 23.8% | 30.6% | |
| Max Drawdown | -29.7% | -83.0% | |
| Fund Family | YieldMax ETF | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Aug 24, 2023 | Mar 10, 1999 |
MSFO vs QQQ Performance
YieldMax Microsoft Option Income Strategy ETF (MSFO) is a ETF from YieldMax ETF and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MSFO returned -2.82% while QQQ returned +26.02%. Year to date, MSFO is up 3.94% versus a gain of 17.46% for QQQ.
Over three years, MSFO compounded at +15.65% per year against +25.51% for QQQ. Across the full 3-year window we track, MSFO has the edge at +15.65% annualized vs +13.08%. 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 23.8% for MSFO. 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 -29.7% for MSFO 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MSFO charges 1.07% per year while QQQ charges 0.18%. On a $10,000 position that is $107 vs $18 annually, a gap of $89 per year that compounds over a long holding period. On income, MSFO currently yields 42.88% against 0.41% for QQQ.
Holdings Overlap
MSFO and QQQ share 0 holdings out of 105 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, MSFO or QQQ?
MSFO has an expense ratio of 1.07% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $89 per year of difference.
Which performed better, MSFO or QQQ?
Over the past year MSFO returned -2.82% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), MSFO annualized +15.65% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, MSFO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 23.8% for MSFO. Worst drawdown: MSFO -29.7% vs QQQ -83.0%.
Should I hold both MSFO and QQQ?
MSFO and QQQ have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSFO and QQQ?
MSFO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, MSFO or QQQ?
MSFO yields 42.88% while QQQ yields 0.41%, so MSFO currently pays the higher dividend yield.
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