MSTI vs QQQ
MSTI vs QQQ
Madison Short-Term Strategic Income 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 | MSTI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.18% | |
| AUM | $49M | $455.8B | |
| Dividend Yield | 5.33% | 0.41% | |
| Holdings | 99 | 108 | |
| YTD Return | +1.03% | +18.20% | |
| 1Y Return | +3.13% | +27.63% | |
| 3Y Return (annualized) | +5.90% | +25.54% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 2.5% | 30.6% | |
| Max Drawdown | -1.5% | -83.0% | |
| Fund Family | Madison Funds | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 5, 2023 | Mar 10, 1999 |
MSTI vs QQQ Performance
Madison Short-Term Strategic Income ETF (MSTI) is a ETF from Madison Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MSTI returned +3.13% while QQQ returned +27.63%. Year to date, MSTI is up 1.03% versus a gain of 18.20% for QQQ.
Over three years, MSTI compounded at +5.90% per year against +25.54% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.11% annualized vs +5.90%. 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 2.5% for MSTI. 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 -1.5% for MSTI 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MSTI charges 0.36% per year while QQQ charges 0.18%. On a $10,000 position that is $36 vs $18 annually, a gap of $18 per year that compounds over a long holding period. On income, MSTI currently yields 5.33% against 0.41% for QQQ.
Holdings Overlap
MSTI and QQQ share 0 holdings out of 159 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, MSTI or QQQ?
MSTI has an expense ratio of 0.36% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, MSTI or QQQ?
Over the past year MSTI returned +3.13% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), MSTI annualized +5.90% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, MSTI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 2.5% for MSTI. Worst drawdown: MSTI -1.5% vs QQQ -83.0%.
Should I hold both MSTI and QQQ?
MSTI and QQQ have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSTI and QQQ?
MSTI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 159 unique securities.
Which pays a higher dividend, MSTI or QQQ?
MSTI yields 5.33% while QQQ yields 0.41%, so MSTI currently pays the higher dividend yield.
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