MTUM vs QQQ
iShares MSCI USA Momentum Factor ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
MTUM has a lower expense ratio. MTUM delivered stronger 1-year returns. MTUM offers more diversification with 130 holdings.
Side-by-Side Comparison
| Metric | MTUM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $25.9B | $496.3B | |
| Dividend Yield | 0.62% | 0.44% | |
| Holdings | 130 | 108 | |
| YTD Return | +20.83% | +16.23% | |
| 1Y Return | +26.39% | +26.23% | |
| 3Y Return (annualized) | +29.61% | +25.75% | |
| 5Y Return (annualized) | +12.92% | +14.78% | |
| Volatility (annualized) | 16.7% | 30.6% | |
| Max Drawdown | -34.1% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 16, 2013 | Mar 10, 1999 |
MTUM vs QQQ Performance
iShares MSCI USA Momentum Factor ETF (MTUM) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MTUM returned +26.39% while QQQ returned +26.23%. Year to date, MTUM is up 20.83% versus a gain of 16.23% for QQQ.
Over three years, MTUM compounded at +29.61% per year against +25.75% for QQQ; over five years the annualized figures are +12.92% and +14.78% respectively. Across the full 13-year window we track, MTUM has the edge at +14.85% annualized vs +13.02%. 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 16.7% for MTUM. 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 -34.1% for MTUM 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MTUM 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, MTUM currently yields 0.62% against 0.44% for QQQ.
Holdings Overlap
MTUM and QQQ share 31 holdings out of 198 unique holdings combined, representing a 35.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MTUM or QQQ?
MTUM has an expense ratio of 0.15% while QQQ charges 0.18%. MTUM is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, MTUM or QQQ?
Over the past year MTUM returned +26.39% vs +26.23% for QQQ, so MTUM leads on 1-year performance. Over the longest common window we track (13 years), MTUM annualized +14.85% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, MTUM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.7% for MTUM. Worst drawdown: MTUM -34.1% vs QQQ -83.0%.
Should I hold both MTUM and QQQ?
MTUM and QQQ have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MTUM and QQQ?
MTUM and QQQ share 31 common holdings with a 35.3% weight overlap. Combined, they hold 198 unique securities.
Which pays a higher dividend, MTUM or QQQ?
MTUM yields 0.62% while QQQ yields 0.44%, so MTUM currently pays the higher dividend yield.
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