MUSE vs QQQ
MUSE vs QQQ
TCW Multisector Credit Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. MUSE offers more diversification with 144 holdings.
Side-by-Side Comparison
| Metric | MUSE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.18% | |
| AUM | $40M | $455.8B | |
| Dividend Yield | 7.67% | 0.41% | |
| Holdings | 260 | 108 | |
| YTD Return | +1.98% | +14.45% | |
| 1Y Return | +4.80% | +24.70% | |
| 3Y Return (annualized) | - | +24.19% | |
| 5Y Return (annualized) | - | +14.49% | |
| Volatility (annualized) | 3.0% | 30.6% | |
| Max Drawdown | -3.6% | -83.0% | |
| Fund Family | TCW ETFs | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 15, 2024 | Mar 10, 1999 |
MUSE vs QQQ Performance
TCW Multisector Credit Income ETF (MUSE) is a ETF from TCW ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MUSE returned +4.80% while QQQ returned +24.70%. Year to date, MUSE is up 1.98% versus a gain of 14.45% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.0% for MUSE. 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 -3.6% for MUSE 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MUSE charges 0.56% per year while QQQ charges 0.18%. On a $10,000 position that is $56 vs $18 annually, a gap of $38 per year that compounds over a long holding period. On income, MUSE currently yields 7.67% against 0.41% for QQQ.
Holdings Overlap
MUSE and QQQ share 0 holdings out of 247 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, MUSE or QQQ?
MUSE has an expense ratio of 0.56% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $38 per year of difference.
Which performed better, MUSE or QQQ?
Over the past year MUSE returned +4.80% vs +24.70% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), MUSE annualized +6.21% vs +12.98% for QQQ. Past performance does not guarantee future results.
Which is riskier, MUSE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.0% for MUSE. Worst drawdown: MUSE -3.6% vs QQQ -83.0%.
Should I hold both MUSE and QQQ?
MUSE and QQQ have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUSE and QQQ?
MUSE and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 247 unique securities.
Which pays a higher dividend, MUSE or QQQ?
MUSE yields 7.67% while QQQ yields 0.41%, so MUSE currently pays the higher dividend yield.
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