MDIV vs QQQ
First Trust Multi-Asset Diversified Income Index Fund vs Invesco QQQ Trust, Series 1
Which is better, MDIV or QQQ?
Equity-oriented Balanced against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | MDIV | QQQ |
|---|---|---|
| Expense Ratio | 0.75% | 0.18%Best |
| AUM | $411M | $506.1B |
| Dividend Yield | 7.05% | 0.42% |
| Holdings | 248 | 321 |
| YTD Return | +6.20% | +19.30%Best |
| 1Y Return | +7.54% | +22.47%Best |
| 3Y Return (annualized) | +9.65% | +26.18%Best |
| 5Y Return (annualized) | +5.39% | +15.42%Best |
| Volatility (annualized) | 13.5%Best | 17.5% |
| Max Drawdown | -57.0% | -35.1%Best |
| $10,000 over 5 years | $13,002 | $20,484Best |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Allocation/Balanced | Equity |
| Style | Equity-oriented Balanced | Large Cap Growth |
| Inception | Aug 13, 2012 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Aug 14, 2012 to Oct 14, 2026 (14.2 years).
MDIV vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
MDIV vs QQQ Performance
First Trust Multi-Asset Diversified Income Index Fund (MDIV) is an ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year MDIV returned +7.54% while QQQ returned +22.47%. Year to date, MDIV is up 6.20% versus a gain of 19.30% for QQQ.
Over three years, MDIV compounded at +9.65% per year against +26.18% for QQQ; over five years the annualized figures are +5.39% and +15.42% respectively. Across the full 14-year window we track, QQQ has the edge at +18.63% annualized vs +0.83%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.5% compared with 13.5% for MDIV. 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 -57.0% for MDIV and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.55. They move together some of the time, and apart the rest.
Fees and Cost Over Time
MDIV charges 0.75% per year while QQQ charges 0.18%. On a $10,000 position that is $75 vs $18 annually, a gap of $57 per year that compounds over a long holding period. On income, MDIV currently yields 7.05% against 0.42% for QQQ.
Holdings Overlap
At least 1.2% of QQQ's money is in holdings MDIV also owns.
Stated as a floor: for MDIV, our book for it covers 86.1% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
QQQ and MDIV share little of their money.
3 positions in common, counted across the 107 positions we hold weights for in MDIV and 101 in QQQ, against full books of 248 and 321.
You are not choosing between two funds in isolation.
Whichever of MDIV and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MDIV or QQQ?
MDIV has an expense ratio of 0.75% while QQQ charges 0.18%. QQQ is the cheaper option, by $57 a year on a $10,000 investment.
Which performed better, MDIV or QQQ?
Over the past year MDIV returned +7.54% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), MDIV annualized +0.83% vs +18.63% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MDIV or QQQ?
QQQ has been the more volatile fund at 17.5% annualized versus 13.5% for MDIV. Worst drawdown: MDIV -57.0% vs QQQ -35.1%.
Should I hold both MDIV and QQQ?
MDIV and QQQ have a monthly-return correlation of 0.55, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between MDIV and QQQ?
At least 1.2% of QQQ's money is in holdings MDIV also owns. Our book for MDIV is partial, so the real figure is this or higher. They hold 3 positions in common, counted across the 107 positions we hold weights for in MDIV and 101 in QQQ.
Which pays a higher dividend, MDIV or QQQ?
MDIV yields 7.05% while QQQ yields 0.42%, so MDIV currently pays the higher dividend yield.
Is QQQ better than MDIV?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.