MFSM vs QQQ
MFSM vs QQQ
MFS Active Intermediate Muni Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | MFSM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.34% | 0.18% | |
| AUM | $100M | $455.8B | |
| Dividend Yield | 3.55% | 0.41% | |
| Holdings | 305 | 108 | |
| YTD Return | +0.93% | +18.20% | |
| 1Y Return | +4.99% | +27.63% | |
| 3Y Return (annualized) | - | +25.54% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 3.7% | 30.6% | |
| Max Drawdown | -3.9% | -83.0% | |
| Fund Family | MFS Investment Management | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 5, 2024 | Mar 10, 1999 |
MFSM vs QQQ Performance
MFS Active Intermediate Muni Bond ETF (MFSM) is a ETF from MFS Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MFSM returned +4.99% while QQQ returned +27.63%. Year to date, MFSM is up 0.93% versus a gain of 18.20% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.7% for MFSM. 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 -3.9% for MFSM 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
MFSM charges 0.34% per year while QQQ charges 0.18%. On a $10,000 position that is $34 vs $18 annually, a gap of $16 per year that compounds over a long holding period. On income, MFSM currently yields 3.55% against 0.41% for QQQ.
Holdings Overlap
MFSM and QQQ share 0 holdings out of 189 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, MFSM or QQQ?
MFSM has an expense ratio of 0.34% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, MFSM or QQQ?
Over the past year MFSM returned +4.99% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), MFSM annualized +2.87% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, MFSM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.7% for MFSM. Worst drawdown: MFSM -3.9% vs QQQ -83.0%.
Should I hold both MFSM and QQQ?
MFSM 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 MFSM and QQQ?
MFSM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 189 unique securities.
Which pays a higher dividend, MFSM or QQQ?
MFSM yields 3.55% while QQQ yields 0.41%, so MFSM currently pays the higher dividend yield.
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