MSLC vs QQQ
Morgan Stanley Pathway Large Cap Equity ETF vs Invesco QQQ Trust, Series 1
Which is better, MSLC or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.90. MSLC is less concentrated, with 34.4% 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 | MSLC | QQQ |
|---|---|---|
| Expense Ratio | 0.39% | 0.18%Best |
| AUM | $4.1B | $483.5B |
| Dividend Yield | 1.92% | 0.44% |
| Holdings | 789 | 107 |
| YTD Return | +10.11% | +15.94%Best |
| 1Y Return | +13.28% | +20.44%Best |
| 3Y Return (annualized) | - | +24.86% |
| 5Y Return (annualized) | - | +14.26% |
| Volatility (annualized) | 12.2%Best | 19.6% |
| Max Drawdown | -17.9%Best | -22.8% |
| $10,000 over 1.8 years | $12,399 | $13,789Best |
| Top 10 Weight | 34.4%Best | 46.5% |
| Fund Family | Morgan Stanley | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Dec 9, 2024 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 1.8 years row, are measured over the window both funds cover: Dec 9, 2024 to Sep 14, 2026 (1.8 years).
MSLC 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 1.8 years both funds cover.
MSLC vs QQQ Performance
Morgan Stanley Pathway Large Cap Equity ETF (MSLC) is an ETF from Morgan Stanley and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year MSLC returned +13.28% while QQQ returned +20.44%. Year to date, MSLC is up 10.11% versus a gain of 15.94% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 12.2% for MSLC. 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 -17.9% for MSLC and -22.8% 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
MSLC charges 0.39% per year while QQQ charges 0.18%. On a $10,000 position that is $39 vs $18 annually, a gap of $21 per year that compounds over a long holding period. On income, MSLC currently yields 1.92% against 0.44% for QQQ.
Holdings Overlap
47.5% of MSLC's money is in holdings QQQ also owns. 94.6% of QQQ's money is in holdings MSLC also owns.
Most of QQQ is already inside MSLC. Owning both mostly buys the same companies twice.
87 positions in common, counted across the 786 positions we hold weights for in MSLC and 102 in QQQ, against full books of 789 and 107.
What only one of them owns
Our book lists 9 positions for QQQ that do not appear in our book for MSLC (3.0% of the fund), and 602 for MSLC that do not appear in QQQ (49.4%).
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.
Top Shared Holdings
| Stock | Weight in MSLC | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp | 6.79% | 8.44% | 1.65% |
| AAPLApple, Inc | 5.23% | 7.27% | 2.04% |
| MSFTMicrosoft Corp | 5.51% | 5.76% | 0.25% |
| AMZNAmazon.Com Inc | 4.05% | 4.67% | 0.62% |
| GOOGLAlphabet Inc,class A | 3.26% | 3.36% | 0.10% |
| MUMicron Technology, Inc. | 1.56% | 4.43% | 2.87% |
| AVGOBroadcom Inc | 2.47% | 3.16% | 0.69% |
| GOOGAlphabet Inc | 1.97% | 3.13% | 1.16% |
| METAMeta Platforms Inc | 1.94% | 2.78% | 0.84% |
| AMDAdvanced Micro Devices Inc | 0.80% | 3.45% | 2.65% |
94.6% of QQQ is already inside MSLC.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MSLC or QQQ?
MSLC has an expense ratio of 0.39% while QQQ charges 0.18%. QQQ is the cheaper option, by $21 a year on a $10,000 investment.
Which performed better, MSLC or QQQ?
Over the past year MSLC returned +13.28% vs +20.44% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), MSLC annualized +12.69% vs +19.54% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MSLC or QQQ?
QQQ has been the more volatile fund at 19.6% annualized versus 12.2% for MSLC. Worst drawdown: MSLC -17.9% vs QQQ -22.8%.
Should I hold both MSLC and QQQ?
MSLC 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 MSLC and QQQ?
94.6% of QQQ's money is in holdings MSLC also owns. 94.6% of QQQ's is in holdings MSLC also owns. They hold 87 positions in common, counted across the 786 positions we hold weights for in MSLC and 102 in QQQ.
Which pays a higher dividend, MSLC or QQQ?
MSLC yields 1.92% while QQQ yields 0.44%, so MSLC currently pays the higher dividend yield.
Is QQQ better than MSLC?
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.90. MSLC is less concentrated, with 34.4% 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.