MSTQ vs QQQ
LHA Market State Tactical Q 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 | MSTQ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.55% | 0.18% | |
| AUM | $41M | $496.3B | |
| Dividend Yield | 0.79% | 0.44% | |
| Holdings | 8 | 108 | |
| YTD Return | +12.37% | +16.64% | |
| 1Y Return | +6.16% | +27.27% | |
| 3Y Return (annualized) | +15.89% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 20.7% | 30.6% | |
| Max Drawdown | -31.1% | -83.0% | |
| Fund Family | Little Harbor Advisors | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Mar 14, 2022 | Mar 10, 1999 |
MSTQ vs QQQ Performance
LHA Market State Tactical Q ETF (MSTQ) is a ETF from Little Harbor Advisors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MSTQ returned +6.16% while QQQ returned +27.27%. Year to date, MSTQ is up 12.37% versus a gain of 16.64% for QQQ.
Over three years, MSTQ compounded at +15.89% per year against +25.96% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs +11.00%. 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 20.7% for MSTQ. 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 -31.1% for MSTQ 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
MSTQ charges 1.55% per year while QQQ charges 0.18%. On a $10,000 position that is $155 vs $18 annually, a gap of $137 per year that compounds over a long holding period. On income, MSTQ currently yields 0.79% against 0.44% for QQQ.
Holdings Overlap
MSTQ 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, MSTQ or QQQ?
MSTQ has an expense ratio of 1.55% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $137 per year of difference.
Which performed better, MSTQ or QQQ?
Over the past year MSTQ returned +6.16% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), MSTQ annualized +11.00% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, MSTQ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.7% for MSTQ. Worst drawdown: MSTQ -31.1% vs QQQ -83.0%.
Should I hold both MSTQ and QQQ?
MSTQ and QQQ have a monthly-return correlation of 0.94, 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 MSTQ and QQQ?
MSTQ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, MSTQ or QQQ?
MSTQ yields 0.79% while QQQ yields 0.44%, so MSTQ currently pays the higher dividend yield.
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