MSFT vs. QQQ
Compare and contrast key facts about Microsoft Corporation (MSFT) and Invesco QQQ (QQQ).
QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: MSFT or QQQ.
Key characteristics
| MSFT | QQQ | |
|---|---|---|
| YTD Return | 10.45% | 5.41% |
| 1Y Return | 44.73% | 36.11% |
| 3Y Return (Ann) | 17.79% | 8.73% |
| 5Y Return (Ann) | 28.80% | 19.00% |
| 10Y Return (Ann) | 28.52% | 18.48% |
| Sharpe Ratio | 2.10 | 2.25 |
| Daily Std Dev | 21.90% | 16.11% |
| Max Drawdown | -69.41% | -82.98% |
| Current Drawdown | -3.44% | -3.42% |
Correlation
The correlation between MSFT and QQQ is 0.74, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
MSFT vs. QQQ - Performance Comparison
In the year-to-date period, MSFT achieves a 10.45% return, which is significantly higher than QQQ's 5.41% return. Over the past 10 years, MSFT has outperformed QQQ with an annualized return of 28.52%, while QQQ has yielded a comparatively lower 18.48% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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Risk-Adjusted Performance
MSFT vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Microsoft Corporation (MSFT) and Invesco QQQ (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.
Dividends
MSFT vs. QQQ - Dividend Comparison
MSFT's dividend yield for the trailing twelve months is around 0.69%, more than QQQ's 0.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MSFT Microsoft Corporation | 0.69% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% | 2.48% | 2.59% |
QQQ Invesco QQQ | 0.61% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
MSFT vs. QQQ - Drawdown Comparison
The maximum MSFT drawdown since its inception was -69.41%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for MSFT and QQQ. For additional features, visit the drawdowns tool.
Volatility
MSFT vs. QQQ - Volatility Comparison
Microsoft Corporation (MSFT) and Invesco QQQ (QQQ) have volatilities of 4.32% and 4.14%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.