MCR vs QQQ
MCR vs QQQ
MFS Charter Income Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. MCR offers more diversification with 549 holdings.
Side-by-Side Comparison
| Metric | MCR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.18% | |
| AUM | $270M | $455.8B | |
| Dividend Yield | 8.17% | 0.41% | |
| Holdings | 1,076 | 108 | |
| YTD Return | -0.55% | +18.34% | |
| 1Y Return | +3.59% | +28.94% | |
| 3Y Return (annualized) | +7.80% | +25.28% | |
| 5Y Return (annualized) | +0.97% | +15.22% | |
| Volatility (annualized) | 10.2% | 30.6% | |
| Max Drawdown | -45.2% | -83.0% | |
| Fund Family | MFS Investment Management | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 20, 1989 | Mar 10, 1999 |
MCR vs QQQ Performance
MFS Charter Income Trust (MCR) is a ETF from MFS Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MCR returned +3.59% while QQQ returned +28.94%. Year to date, MCR is down 0.55% versus a gain of 18.34% for QQQ.
Over three years, MCR compounded at +7.80% per year against +25.28% for QQQ; over five years the annualized figures are +0.97% and +15.22% respectively. Across the full 27-year window we track, QQQ has the edge at +13.12% annualized vs +0.16%. 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 10.2% for MCR. 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 -45.2% for MCR 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
MCR charges 1.02% per year while QQQ charges 0.18%. On a $10,000 position that is $102 vs $18 annually, a gap of $84 per year that compounds over a long holding period. On income, MCR currently yields 8.17% against 0.41% for QQQ.
Holdings Overlap
MCR and QQQ share 0 holdings out of 652 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, MCR or QQQ?
MCR has an expense ratio of 1.02% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $84 per year of difference.
Which performed better, MCR or QQQ?
Over the past year MCR returned +3.59% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), MCR annualized +0.16% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, MCR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.2% for MCR. Worst drawdown: MCR -45.2% vs QQQ -83.0%.
Should I hold both MCR and QQQ?
MCR 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 MCR and QQQ?
MCR and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 652 unique securities.
Which pays a higher dividend, MCR or QQQ?
MCR yields 8.17% while QQQ yields 0.41%, so MCR currently pays the higher dividend yield.
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