MSTB vs QQQ
LHA Market State Tactical Beta 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 | MSTB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.38% | 0.18% | |
| AUM | $201M | $496.3B | |
| Dividend Yield | 0.38% | 0.44% | |
| Holdings | 10 | 108 | |
| YTD Return | +9.61% | +16.23% | |
| 1Y Return | +15.07% | +26.23% | |
| 3Y Return (annualized) | +17.81% | +25.75% | |
| 5Y Return (annualized) | +7.75% | +14.78% | |
| Volatility (annualized) | 14.2% | 30.6% | |
| Max Drawdown | -25.6% | -83.0% | |
| Fund Family | Little Harbor Advisors | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 30, 2020 | Mar 10, 1999 |
MSTB vs QQQ Performance
LHA Market State Tactical Beta ETF (MSTB) is a ETF from Little Harbor Advisors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MSTB returned +15.07% while QQQ returned +26.23%. Year to date, MSTB is up 9.61% versus a gain of 16.23% for QQQ.
Over three years, MSTB compounded at +17.81% per year against +25.75% for QQQ; over five years the annualized figures are +7.75% and +14.78% respectively. Across the full 6-year window we track, QQQ has the edge at +13.02% annualized vs +11.05%. 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 14.2% for MSTB. 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 -25.6% for MSTB 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
MSTB charges 1.38% per year while QQQ charges 0.18%. On a $10,000 position that is $138 vs $18 annually, a gap of $120 per year that compounds over a long holding period. On income, MSTB currently yields 0.38% against 0.44% for QQQ.
Holdings Overlap
MSTB 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, MSTB or QQQ?
MSTB has an expense ratio of 1.38% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $120 per year of difference.
Which performed better, MSTB or QQQ?
Over the past year MSTB returned +15.07% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), MSTB annualized +11.05% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, MSTB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.2% for MSTB. Worst drawdown: MSTB -25.6% vs QQQ -83.0%.
Should I hold both MSTB and QQQ?
MSTB and QQQ have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between MSTB and QQQ?
MSTB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, MSTB or QQQ?
MSTB yields 0.38% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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