MFUS vs QQQ
MFUS vs QQQ
PIMCO RAFI Dynamic Multi-Factor US Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. MFUS offers more diversification with 844 holdings.
Side-by-Side Comparison
| Metric | MFUS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.18% | |
| AUM | $296M | $455.8B | |
| Dividend Yield | 1.37% | 0.41% | |
| Holdings | 858 | 108 | |
| YTD Return | +17.55% | +17.27% | |
| 1Y Return | +26.56% | +28.64% | |
| 3Y Return (annualized) | +20.42% | +24.88% | |
| 5Y Return (annualized) | +13.24% | +14.86% | |
| Volatility (annualized) | 15.6% | 30.6% | |
| Max Drawdown | -35.2% | -83.0% | |
| Fund Family | PIMCO (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 31, 2017 | Mar 10, 1999 |
MFUS vs QQQ Performance
PIMCO RAFI Dynamic Multi-Factor US Equity ETF (MFUS) is a ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MFUS returned +26.56% while QQQ returned +28.64%. Year to date, MFUS is up 17.55% versus a gain of 17.27% for QQQ.
Over three years, MFUS compounded at +20.42% per year against +24.88% for QQQ; over five years the annualized figures are +13.24% and +14.86% respectively. Across the full 9-year window we track, QQQ has the edge at +13.08% annualized vs +12.77%. 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 15.6% for MFUS. 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 -35.2% for MFUS 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MFUS charges 0.29% per year while QQQ charges 0.18%. On a $10,000 position that is $29 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, MFUS currently yields 1.37% against 0.41% for QQQ.
Holdings Overlap
MFUS and QQQ share 67 holdings out of 880 unique holdings combined, representing a 25.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MFUS | Weight in QQQ | Difference |
|---|---|---|---|
| AAPL | 1.27% | 7.46% | 6.19% |
| NVDA | 0.73% | 7.88% | 7.15% |
| INTC | 3.42% | 2.29% | 1.13% |
| MU | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| WMT | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| TSLA | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
See all 10 holdings MFUS shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, MFUS or QQQ?
MFUS has an expense ratio of 0.29% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, MFUS or QQQ?
Over the past year MFUS returned +26.56% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), MFUS annualized +12.77% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, MFUS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.6% for MFUS. Worst drawdown: MFUS -35.2% vs QQQ -83.0%.
Should I hold both MFUS and QQQ?
MFUS and QQQ have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MFUS and QQQ?
MFUS and QQQ share 67 common holdings with a 25.1% weight overlap. Combined, they hold 880 unique securities.
Which pays a higher dividend, MFUS or QQQ?
MFUS yields 1.37% while QQQ yields 0.41%, so MFUS currently pays the higher dividend yield.
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