MSMR vs QQQ
McElhenny Sheffield Managed Risk 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 | MSMR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.06% | 0.18% | |
| AUM | $183M | $455.8B | |
| Dividend Yield | 1.83% | 0.41% | |
| Holdings | 6 | 108 | |
| YTD Return | +2.50% | +19.68% | |
| 1Y Return | +8.32% | +26.75% | |
| 3Y Return (annualized) | +13.89% | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 10.4% | 30.6% | |
| Max Drawdown | -14.9% | -83.0% | |
| Fund Family | Aptus Capital Advisors | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Nov 16, 2021 | Mar 10, 1999 |
MSMR vs QQQ Performance
McElhenny Sheffield Managed Risk ETF (MSMR) is a ETF from Aptus Capital Advisors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MSMR returned +8.32% while QQQ returned +26.75%. Year to date, MSMR is up 2.50% versus a gain of 19.68% for QQQ.
Over three years, MSMR compounded at +13.89% per year against +26.25% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.15% annualized vs +8.65%. 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 10.4% for MSMR. 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 -14.9% for MSMR 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MSMR charges 1.06% per year while QQQ charges 0.18%. On a $10,000 position that is $106 vs $18 annually, a gap of $88 per year that compounds over a long holding period. On income, MSMR currently yields 1.83% against 0.41% for QQQ.
Holdings Overlap
MSMR and QQQ share 0 holdings out of 108 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, MSMR or QQQ?
MSMR has an expense ratio of 1.06% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $88 per year of difference.
Which performed better, MSMR or QQQ?
Over the past year MSMR returned +8.32% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), MSMR annualized +8.65% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, MSMR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.4% for MSMR. Worst drawdown: MSMR -14.9% vs QQQ -83.0%.
Should I hold both MSMR and QQQ?
MSMR and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSMR and QQQ?
MSMR and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 108 unique securities.
Which pays a higher dividend, MSMR or QQQ?
MSMR yields 1.83% while QQQ yields 0.41%, so MSMR currently pays the higher dividend yield.
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