MTBA vs QQQ
Simplify MBS ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
MTBA has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | MTBA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $1.5B | $455.8B | |
| Dividend Yield | 5.57% | 0.41% | |
| Holdings | 8 | 108 | |
| YTD Return | -0.23% | +17.46% | |
| 1Y Return | +2.44% | +26.02% | |
| 3Y Return (annualized) | - | +25.51% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 3.8% | 30.6% | |
| Max Drawdown | -3.5% | -83.0% | |
| Fund Family | Simplify Exchange Traded Funds | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 6, 2023 | Mar 10, 1999 |
MTBA vs QQQ Performance
Simplify MBS ETF (MTBA) is a ETF from Simplify Exchange Traded Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MTBA returned +2.44% while QQQ returned +26.02%. Year to date, MTBA is down 0.23% versus a gain of 17.46% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.8% for MTBA. 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 -3.5% for MTBA 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MTBA charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, MTBA currently yields 5.57% against 0.41% for QQQ.
Holdings Overlap
MTBA 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, MTBA or QQQ?
MTBA has an expense ratio of 0.15% while QQQ charges 0.18%. MTBA is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, MTBA or QQQ?
Over the past year MTBA returned +2.44% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), MTBA annualized +4.55% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, MTBA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.8% for MTBA. Worst drawdown: MTBA -3.5% vs QQQ -83.0%.
Should I hold both MTBA and QQQ?
MTBA and QQQ have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MTBA and QQQ?
MTBA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 112 unique securities.
Which pays a higher dividend, MTBA or QQQ?
MTBA yields 5.57% while QQQ yields 0.41%, so MTBA currently pays the higher dividend yield.
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