MSSM vs QQQ
Morgan Stanley Pathway Small-Mid Cap Equity ETF vs Invesco QQQ Trust, Series 1
Which is better, MSSM or QQQ?
Small Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window.
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 | MSSM | QQQ |
|---|---|---|
| Expense Ratio | 0.62% | 0.18%Best |
| AUM | $705M | $483.5B |
| Dividend Yield | 2.67% | 0.44% |
| Holdings | 2,229 | 107 |
| YTD Return | +12.78% | +15.18%Best |
| 1Y Return | +18.08% | +19.65%Best |
| 3Y Return (annualized) | - | +24.60% |
| 5Y Return (annualized) | - | +13.94% |
| Volatility (annualized) | 15.3%Best | 19.7% |
| Max Drawdown | -24.2% | -22.8%Best |
| $10,000 over 1.8 years | $12,029 | $13,691Best |
| Fund Family | Morgan Stanley | Invesco (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Growth |
| Inception | Dec 9, 2024 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
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 15, 2026 (1.8 years).
MSSM 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.
MSSM vs QQQ Performance
Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) is an ETF from Morgan Stanley and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year MSSM returned +18.08% while QQQ returned +19.65%. Year to date, MSSM is up 12.78% versus a gain of 15.18% 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 19.7% compared with 15.3% for MSSM. 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 -24.2% for MSSM 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MSSM charges 0.62% per year while QQQ charges 0.18%. On a $10,000 position that is $62 vs $18 annually, a gap of $44 per year that compounds over a long holding period. On income, MSSM currently yields 2.67% against 0.44% for QQQ.
Holdings Overlap
At least 1.6% of QQQ's money is in holdings MSSM also owns.
Stated as a floor: for MSSM, our book for it covers 90.4% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
QQQ and MSSM share little of their money.
The two holdings books were reported 97 days apart, MSSM as of Apr 30, 2026 and QQQ as of Aug 5, 2026, so some of the difference between them is the time between the two reports rather than the funds.
4 positions in common, counted across the 1,406 positions we hold weights for in MSSM and 102 in QQQ, against full books of 2,229 and 107.
You are not choosing between two funds in isolation.
Whichever of MSSM and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MSSM or QQQ?
MSSM has an expense ratio of 0.62% while QQQ charges 0.18%. QQQ is the cheaper option, by $44 a year on a $10,000 investment.
Which performed better, MSSM or QQQ?
Over the past year MSSM returned +18.08% vs +19.65% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), MSSM annualized +10.81% vs +19.07% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MSSM or QQQ?
QQQ has been the more volatile fund at 19.7% annualized versus 15.3% for MSSM. Worst drawdown: MSSM -24.2% vs QQQ -22.8%.
Should I hold both MSSM and QQQ?
MSSM and QQQ have a monthly-return correlation of 0.81, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between MSSM and QQQ?
At least 1.6% of QQQ's money is in holdings MSSM also owns. Our book for MSSM is partial, so the real figure is this or higher. They hold 4 positions in common, counted across the 1,406 positions we hold weights for in MSSM and 102 in QQQ.
Which pays a higher dividend, MSSM or QQQ?
MSSM yields 2.67% while QQQ yields 0.44%, so MSSM currently pays the higher dividend yield.
Is QQQ better than MSSM?
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.