MISL vs. QQQ

Last updated Jun 23, 2026

MISL (First Trust Indxx Aerospace & Defense ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - MISL is a Industrials Equities fund tracking the Indxx US Aerospace & Defense Index - Benchmark TR Gross, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 3 years, MISL returned 26.09%/yr vs 27.47%/yr for QQQ. At a 0.44 correlation, their price movements are largely independent. MISL charges 0.60%/yr vs 0.18%/yr for QQQ.

Performance

MISL vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Indxx Aerospace & Defense ETF (MISL) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MISL achieves a 4.18% return, which is significantly lower than QQQ's 20.41% return.

MISL

• 1D: -3.99%
• 1M: -4.32%
• YTD: 4.18%
• 6M: 1.80%
• 1Y: 25.39%
• 3Y*: 26.09%
• 5Y*: —
• 10Y*: —

QQQ

• 1D: -0.25%
• 1M: 2.96%
• YTD: 20.41%
• 6M: 19.46%
• 1Y: 40.91%
• 3Y*: 27.47%
• 5Y*: 16.94%
• 10Y*: 22.48%

*Multi-year figures are annualized to reflect compound growth (CAGR)

MISL vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
MISL First Trust Indxx Aerospace & Defense ETF	4.18%	41.24%	20.48%	14.78%	8.22%
QQQ Invesco QQQ ETF	20.41%	20.77%	25.58%	54.86%	-6.08%

Correlation

The correlation between MISL and QQQ is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.44
Correlation (All Time) Calculated using the full available price history since Oct 26, 2022	0.44

MISL vs. QQQ - Sectors Allocation Comparison

Sectors	MISL	QQQ
Industrials	82.2%	2.6%
Technology	17.8%	58.7%
Basic Materials	-	1.0%
Communication Services	-	14.3%
Consumer Cyclical	-	11.4%
Consumer Defensive	-	6.4%
Energy	-	0.5%
Financial Services	-	0.2%
Healthcare	-	3.7%
Real Estate	-	0.1%
Utilities	-	1.2%

Return for Risk

MISL vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MISL

MISL Risk / Return Rank: 30
MISL Sharpe Ratio Rank: 30
MISL Sortino Ratio Rank: 31
MISL Omega Ratio Rank: 27
MISL Calmar Ratio Rank: 33
MISL Martin Ratio Rank: 30

QQQ

QQQ Risk / Return Rank: 72
QQQ Sharpe Ratio Rank: 76
QQQ Sortino Ratio Rank: 70
QQQ Omega Ratio Rank: 72
QQQ Calmar Ratio Rank: 70
QQQ Martin Ratio Rank: 71

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MISL vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Indxx Aerospace & Defense ETF (MISL) and Invesco QQQ ETF (QQQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	MISL	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.07	2.33	-1.26
Sortino ratio: Return per unit of downside risk	1.64	3.03	-1.39
Omega ratio: Gain probability vs. loss probability	1.18	1.41	-0.22
Calmar ratio: Return relative to maximum drawdown	1.63	3.44	-1.81
Martin ratio: Return relative to average drawdown	4.06	12.79	-8.72

MISL vs. QQQ - Sharpe Ratio Comparison

The current MISL Sharpe Ratio is 1.07, which is lower than the QQQ Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of MISL and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MISL vs. QQQ - Drawdown Comparison

The maximum MISL drawdown since its inception was -17.91%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for MISL and QQQ.

Drawdown Indicators

	MISL	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-17.91%	-82.97%	+65.06%
Max Drawdown (1Y) Largest decline over 1 year	-15.69%	-11.96%	-3.73%
Max Drawdown (3Y) Largest decline over 3 years	-17.91%	-22.77%	+4.86%
Max Drawdown (5Y) Largest decline over 5 years	—	-35.12%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.12%	—
Current Drawdown Current decline from peak	-12.61%	-0.99%	-11.62%
Average Drawdown Average peak-to-trough decline	-3.57%	-32.73%	+29.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.26%	3.21%	+3.05%

Volatility

MISL vs. QQQ - Volatility Comparison

First Trust Indxx Aerospace & Defense ETF (MISL) has a higher volatility of 10.32% compared to Invesco QQQ ETF (QQQ) at 8.47%. This indicates that MISL's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MISL	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.32%	8.47%	+1.85%
Volatility (6M) Calculated over the trailing 6-month period	20.35%	14.20%	+6.15%
Volatility (1Y) Calculated over the trailing 1-year period	23.94%	17.67%	+6.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.51%	22.64%	-3.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.51%	22.43%	-2.92%

MISL vs. QQQ - Expense Ratio Comparison

MISL has a 0.60% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

MISL vs. QQQ - Dividend Comparison

MISL's dividend yield for the trailing twelve months is around 0.37%, less than QQQ's 0.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MISL First Trust Indxx Aerospace & Defense ETF	0.37%	0.40%	0.74%	0.63%	0.08%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
QQQ Invesco QQQ ETF	0.49%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both MISL and QQQ in my portfolio?

MISL and QQQ have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MISL or QQQ?

MISL has higher volatility (10.32%) compared to QQQ (8.47%). In terms of maximum drawdown, MISL dropped -17.91% vs QQQ's -82.97%.

Which ETF is better, MISL or QQQ?

On 3-year performance, QQQ leads with 27.47% vs 26.09% for MISL. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 8.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MISL or QQQ?

Over the 3-year period, QQQ has performed better with a 27.47% return vs 26.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MISL or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.60% for MISL.

Which ETF pays a higher dividend yield, MISL or QQQ?

QQQ has the higher dividend yield at 0.49%, compared with 0.37% for MISL.

What is the main difference between MISL and QQQ?

MISL is categorized as Industrials Equities, while QQQ is Nasdaq-100. MISL tracks Indxx US Aerospace & Defense Index - Benchmark TR Gross, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.60% for MISL and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.33 vs 1.07), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.