MSSS vs QQQ
Monarch Select Subsector Index 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 108 holdings.
Side-by-Side Comparison
| Metric | MSSS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.42% | 0.18% | |
| AUM | $150M | $496.3B | |
| Dividend Yield | 0.28% | 0.44% | |
| Holdings | 10 | 108 | |
| YTD Return | +20.35% | +16.64% | |
| 1Y Return | +22.15% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 15.8% | 30.6% | |
| Max Drawdown | -19.1% | -83.0% | |
| Fund Family | Monarch Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 12, 2024 | Mar 10, 1999 |
MSSS vs QQQ Performance
Monarch Select Subsector Index ETF (MSSS) is a ETF from Monarch Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MSSS returned +22.15% while QQQ returned +27.27%. Year to date, MSSS is up 20.35% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 15.8% for MSSS. 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 -19.1% for MSSS 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MSSS charges 1.42% per year while QQQ charges 0.18%. On a $10,000 position that is $142 vs $18 annually, a gap of $124 per year that compounds over a long holding period. On income, MSSS currently yields 0.28% against 0.44% for QQQ.
Holdings Overlap
MSSS and QQQ share 0 holdings out of 112 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, MSSS or QQQ?
MSSS has an expense ratio of 1.42% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $124 per year of difference.
Which performed better, MSSS or QQQ?
Over the past year MSSS returned +22.15% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), MSSS annualized +16.53% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, MSSS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.8% for MSSS. Worst drawdown: MSSS -19.1% vs QQQ -83.0%.
Should I hold both MSSS and QQQ?
MSSS and QQQ have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSSS and QQQ?
MSSS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 112 unique securities.
Which pays a higher dividend, MSSS or QQQ?
MSSS yields 0.28% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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