MULT vs QQQ
Franklin Multisector Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. MULT offers more diversification with 338 holdings.
Side-by-Side Comparison
| Metric | MULT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.18% | |
| AUM | $12M | $496.3B | |
| Dividend Yield | 3.83% | 0.44% | |
| Holdings | 338 | 108 | |
| YTD Return | +1.31% | +16.64% | |
| 1Y Return | +3.40% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 1.9% | 30.6% | |
| Max Drawdown | -1.7% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 26, 2025 | Mar 10, 1999 |
MULT vs QQQ Performance
Franklin Multisector Income ETF (MULT) is a ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MULT returned +3.40% while QQQ returned +27.27%. Year to date, MULT is up 1.31% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 1.9% for MULT. 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 -1.7% for MULT 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MULT charges 0.39% per year while QQQ charges 0.18%. On a $10,000 position that is $39 vs $18 annually, a gap of $21 per year that compounds over a long holding period. On income, MULT currently yields 3.83% against 0.44% for QQQ.
Holdings Overlap
MULT and QQQ share 0 holdings out of 290 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, MULT or QQQ?
MULT has an expense ratio of 0.39% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, MULT or QQQ?
Over the past year MULT returned +3.40% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results.
Which is riskier, MULT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 1.9% for MULT. Worst drawdown: MULT -1.7% vs QQQ -83.0%.
Should I hold both MULT and QQQ?
MULT and QQQ have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MULT and QQQ?
MULT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 290 unique securities.
Which pays a higher dividend, MULT or QQQ?
MULT yields 3.83% while QQQ yields 0.44%, so MULT currently pays the higher dividend yield.
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