MKTN vs QQQ
Federated Hermes MDT Market Neutral ETF vs Invesco QQQ Trust, Series 1
Which is better, MKTN or QQQ?
Opposite sides of the same exposure.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. The two move opposite each other, correlation -0.57, so holding both offsets the exposure while paying both fees.
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 | MKTN | QQQ |
|---|---|---|
| Expense Ratio | 1.94% | 0.18%Best |
| AUM | $150M | $506.1B |
| Dividend Yield | 0.47% | 0.42% |
| Holdings | 802 | 321 |
| YTD Return | +11.85% | +19.30%Best |
| 1Y Return | +17.53% | +22.47%Best |
| 3Y Return (annualized) | - | +26.18% |
| 5Y Return (annualized) | - | +15.42% |
| Volatility (annualized) | 5.7%Best | 21.2% |
| Max Drawdown | -4.1%Best | -12.0% |
| $10,000 over 1.1 years | $11,580 | $12,460Best |
| Fund Family | Federated Hermes | Invesco (US) |
| Category | Alternative | Equity |
| Style | Market Neutral Strategy | Large Cap Growth |
| Inception | Sep 24, 2025 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 1.1 years row, are measured over the window both funds cover: Sep 25, 2025 to Oct 14, 2026 (1.1 years).
MKTN 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 covers the 1.1 years both funds cover.
MKTN vs QQQ Performance
Federated Hermes MDT Market Neutral ETF (MKTN) is an ETF from Federated Hermes and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year MKTN returned +17.53% while QQQ returned +22.47%. Year to date, MKTN is up 11.85% versus a gain of 19.30% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 21.2% compared with 5.7% for MKTN. 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 -4.1% for MKTN and -12.0% 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 -0.57. They move opposite each other. Holding both offsets the exposure rather than spreading it, while paying both funds' fees.
Fees and Cost Over Time
MKTN charges 1.94% per year while QQQ charges 0.18%. On a $10,000 position that is $194 vs $18 annually, a gap of $176 per year that compounds over a long holding period. On income, MKTN currently yields 0.47% against 0.42% for QQQ.
Holdings Overlap
At least 45.1% of QQQ's money is in holdings MKTN also owns.
Stated as a floor: for MKTN, our book for it covers 93.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
They hold the same names on opposite sides, so owning both offsets the exposure rather than doubling it.
44 positions in common, counted across the 401 positions we hold weights for in MKTN and 101 in QQQ, against full books of 802 and 321.
Top Shared Holdings
| Stock | Weight in MKTN | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 1.81% | 8.33% | 6.52% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | -0.12% | 5.76% | 5.88% |
| AMDAdvanced Micro Devices Inc. | -0.30% | 4.17% | 4.47% |
| GOOGLAlphabet Inc-cl A | 0.75% | 3.05% | 2.30% |
| CRWDCrowdstrike Holdings Inc. Class A | 2.46% | 1.13% | 1.33% |
| METAMeta Platform Inc | -0.13% | 3.26% | 3.39% |
| FTNTFortinet Inc. | 2.55% | 0.55% | 2.00% |
| INTUIntuit, Inc. | 2.41% | 0.32% | 2.09% |
| AVGOBroadcom Inc | 0.19% | 2.53% | 2.34% |
| REGNRegeneron Pharmaceuticals, Inc. | 1.59% | 0.32% | 1.27% |
45.1% of QQQ is already inside MKTN.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MKTN or QQQ?
MKTN has an expense ratio of 1.94% while QQQ charges 0.18%. QQQ is the cheaper option, by $176 a year on a $10,000 investment.
Which performed better, MKTN or QQQ?
Over the past year MKTN returned +17.53% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), MKTN annualized +14.27% vs +22.13% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MKTN or QQQ?
QQQ has been the more volatile fund at 21.2% annualized versus 5.7% for MKTN. Worst drawdown: MKTN -4.1% vs QQQ -12.0%.
Should I hold both MKTN and QQQ?
MKTN and QQQ have a monthly-return correlation of -0.57, so they move opposite each other. Holding both offsets the exposure rather than spreading it, and pays both funds' fees on the way. This is information, not a recommendation.
What is the holdings overlap between MKTN and QQQ?
At least 45.1% of QQQ's money is in holdings MKTN also owns. Our book for MKTN is partial, so the real figure is this or higher. They hold 44 positions in common, counted across the 401 positions we hold weights for in MKTN and 101 in QQQ.
Which pays a higher dividend, MKTN or QQQ?
MKTN yields 0.47% while QQQ yields 0.42%, so MKTN currently pays the higher dividend yield.
Is QQQ better than MKTN?
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. The two move opposite each other, correlation -0.57, so holding both offsets the exposure while paying both fees. Which one suits a particular account depends on what it is for. This is information, not a recommendation.