MUSI vs QQQ
MUSI vs QQQ
American Century Multisector Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. MUSI offers more diversification with 150 holdings.
Side-by-Side Comparison
| Metric | MUSI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $244M | $455.8B | |
| Dividend Yield | 5.51% | 0.41% | |
| Holdings | 374 | 108 | |
| YTD Return | +0.19% | +12.48% | |
| 1Y Return | +3.76% | +22.35% | |
| 3Y Return (annualized) | +6.04% | +22.30% | |
| 5Y Return (annualized) | +1.89% | +14.24% | |
| Volatility (annualized) | 5.4% | 30.6% | |
| Max Drawdown | -13.9% | -83.0% | |
| Fund Family | American Century Investments | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 29, 2021 | Mar 10, 1999 |
MUSI vs QQQ Performance
American Century Multisector Income ETF (MUSI) is a ETF from American Century Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MUSI returned +3.76% while QQQ returned +22.35%. Year to date, MUSI is up 0.19% versus a gain of 12.48% for QQQ.
Over three years, MUSI compounded at +6.04% per year against +22.30% for QQQ; over five years the annualized figures are +1.89% and +14.24% respectively. Across the full 5-year window we track, QQQ has the edge at +12.91% annualized vs +1.91%. 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 5.4% for MUSI. 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 -13.9% for MUSI 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUSI charges 0.38% per year while QQQ charges 0.18%. On a $10,000 position that is $38 vs $18 annually, a gap of $20 per year that compounds over a long holding period. On income, MUSI currently yields 5.51% against 0.41% for QQQ.
Holdings Overlap
MUSI and QQQ share 0 holdings out of 253 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, MUSI or QQQ?
MUSI has an expense ratio of 0.38% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, MUSI or QQQ?
Over the past year MUSI returned +3.76% vs +22.35% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), MUSI annualized +1.91% vs +12.91% for QQQ. Past performance does not guarantee future results.
Which is riskier, MUSI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.4% for MUSI. Worst drawdown: MUSI -13.9% vs QQQ -83.0%.
Should I hold both MUSI and QQQ?
MUSI and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUSI and QQQ?
MUSI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 253 unique securities.
Which pays a higher dividend, MUSI or QQQ?
MUSI yields 5.51% while QQQ yields 0.41%, so MUSI currently pays the higher dividend yield.
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