MSTQ vs SPY

MSTQ vs SPY
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Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricMSTQSPYWinner
Expense Ratio1.55%0.09%
AUM$41M$821.1B
Dividend Yield0.79%1.01%
Holdings8505
YTD Return+15.26%+14.24%
1Y Return+5.65%+21.71%
3Y Return (annualized)+16.55%+22.10%
5Y Return (annualized)-+13.21%
Volatility (annualized)20.8%15.3%
Max Drawdown-31.1%-56.5%
Fund FamilyLittle Harbor AdvisorsState Street Investment Management
CategoryAlternativeEquity
InceptionMar 14, 2022Jan 22, 1993

MSTQ vs SPY Performance

LHA Market State Tactical Q ETF (MSTQ) is a ETF from Little Harbor Advisors and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MSTQ returned +5.65% while SPY returned +21.71%. Year to date, MSTQ is up 15.26% versus a gain of 14.24% for SPY.

Over three years, MSTQ compounded at +16.55% per year against +22.10% for SPY. Across the full 4-year window we track, MSTQ has the edge at +11.69% annualized vs +8.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

MSTQ has been the more volatile fund, with annualized monthly volatility of 20.8% compared with 15.3% for SPY. 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 -56.5% for SPY. 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 0.85. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

MSTQ charges 1.55% per year while SPY charges 0.09%. On a $10,000 position that is $155 vs $9 annually, a gap of $146 per year that compounds over a long holding period. On income, MSTQ currently yields 0.79% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

MSTQ and SPY share 0 holdings out of 507 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 SPY?

MSTQ has an expense ratio of 1.55% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $146 per year of difference.

Which performed better, MSTQ or SPY?

Over the past year MSTQ returned +5.65% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), MSTQ annualized +11.69% vs +8.86% for SPY. Past performance does not guarantee future results.

Which is riskier, MSTQ or SPY?

MSTQ has been the more volatile fund at 20.8% annualized versus 15.3% for SPY. Worst drawdown: MSTQ -31.1% vs SPY -56.5%.

Should I hold both MSTQ and SPY?

MSTQ and SPY have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MSTQ and SPY?

MSTQ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.

Which pays a higher dividend, MSTQ or SPY?

MSTQ yields 0.79% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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