MSTB vs. MSTQ

Last updated Jun 24, 2026

MSTB (LHA Market State Tactical Beta ETF) and MSTQ (LHA Market State Tactical Q ETF) are both exchange-traded funds - MSTB is a Equity Hedged fund tracking the S&P 500® Index, while MSTQ is a Options Trading fund actively managed by Little Harbor Advisors. MSTB is passively managed, while MSTQ is actively managed. Over the past 3 years, MSTB returned 17.08%/yr vs 21.44%/yr for MSTQ. Their correlation of 0.89 suggests significant overlap in exposure. MSTB charges 1.40%/yr vs 1.59%/yr for MSTQ.

Performance

MSTB vs. MSTQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in LHA Market State Tactical Beta ETF (MSTB) and LHA Market State Tactical Q ETF (MSTQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSTB achieves a 5.84% return, which is significantly lower than MSTQ's 12.49% return.

MSTB

• 1D: -1.22%
• 1M: -1.58%
• YTD: 5.84%
• 6M: 4.97%
• 1Y: 17.06%
• 3Y*: 17.08%
• 5Y*: 7.95%
• 10Y*: —

MSTQ

• 1D: -2.91%
• 1M: -0.78%
• YTD: 12.49%
• 6M: 10.94%
• 1Y: 26.47%
• 3Y*: 21.44%
• 5Y*: —
• 10Y*: —

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

MSTB vs. MSTQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
MSTB LHA Market State Tactical Beta ETF	5.84%	18.57%	18.82%	16.94%	-11.71%
MSTQ LHA Market State Tactical Q ETF	12.49%	20.57%	19.58%	43.10%	-21.50%

Correlation

The correlation between MSTB and MSTQ is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (All Time) Calculated using the full available price history since Mar 15, 2022	0.89

The correlation between MSTB and MSTQ has been stable across timeframes, ranging from 0.89 to 0.89 - a consistent structural relationship.

Return for Risk

MSTB vs. MSTQ — Risk / Return Rank

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

MSTB

MSTB Risk / Return Rank: 48
MSTB Sharpe Ratio Rank: 49
MSTB Sortino Ratio Rank: 48
MSTB Omega Ratio Rank: 49
MSTB Calmar Ratio Rank: 44
MSTB Martin Ratio Rank: 49

MSTQ

MSTQ Risk / Return Rank: 48
MSTQ Sharpe Ratio Rank: 53
MSTQ Sortino Ratio Rank: 49
MSTQ Omega Ratio Rank: 51
MSTQ Calmar Ratio Rank: 46
MSTQ Martin Ratio Rank: 43

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.

MSTB vs. MSTQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for LHA Market State Tactical Beta ETF (MSTB) and LHA Market State Tactical Q ETF (MSTQ). 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.

	MSTB	MSTQ	Difference
Sharpe ratio: Return per unit of total volatility	1.61	1.68	-0.07
Sortino ratio: Return per unit of downside risk	2.20	2.24	-0.04
Omega ratio: Gain probability vs. loss probability	1.29	1.30	-0.01
Calmar ratio: Return relative to maximum drawdown	2.06	2.15	-0.08
Martin ratio: Return relative to average drawdown	7.62	6.57	+1.05

MSTB vs. MSTQ - Sharpe Ratio Comparison

The current MSTB Sharpe Ratio is 1.61, which is comparable to the MSTQ Sharpe Ratio of 1.68. The chart below compares the historical Sharpe Ratios of MSTB and MSTQ, 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

MSTB vs. MSTQ - Drawdown Comparison

The maximum MSTB drawdown since its inception was -25.64%, smaller than the maximum MSTQ drawdown of -31.05%. Use the drawdown chart below to compare losses from any high point for MSTB and MSTQ.

Drawdown Indicators

	MSTB	MSTQ	Difference
Max Drawdown Largest peak-to-trough decline	-25.64%	-31.05%	+5.41%
Max Drawdown (1Y) Largest decline over 1 year	-8.31%	-12.39%	+4.08%
Max Drawdown (3Y) Largest decline over 3 years	-10.81%	-15.22%	+4.41%
Max Drawdown (5Y) Largest decline over 5 years	-25.64%	—	—
Current Drawdown Current decline from peak	-3.22%	-4.38%	+1.16%
Average Drawdown Average peak-to-trough decline	-7.13%	-8.55%	+1.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.24%	4.04%	-1.80%

Volatility

MSTB vs. MSTQ - Volatility Comparison

The current volatility for LHA Market State Tactical Beta ETF (MSTB) is 3.90%, while LHA Market State Tactical Q ETF (MSTQ) has a volatility of 7.78%. This indicates that MSTB experiences smaller price fluctuations and is considered to be less risky than MSTQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSTB	MSTQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.90%	7.78%	-3.88%
Volatility (6M) Calculated over the trailing 6-month period	7.99%	12.35%	-4.36%
Volatility (1Y) Calculated over the trailing 1-year period	10.67%	15.87%	-5.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.03%	19.06%	-5.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.86%	19.06%	-5.20%

MSTB vs. MSTQ - Expense Ratio Comparison

MSTB has a 1.40% expense ratio, which is lower than MSTQ's 1.59% expense ratio.

Dividends

MSTB vs. MSTQ - Dividend Comparison

MSTB's dividend yield for the trailing twelve months is around 0.39%, less than MSTQ's 12.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
MSTB LHA Market State Tactical Beta ETF	0.39%	0.41%	0.95%	0.16%	1.34%	2.20%	1.78%
MSTQ LHA Market State Tactical Q ETF	12.42%	13.97%	3.72%	0.77%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MSTB and MSTQ in my portfolio?

MSTB and MSTQ have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSTB or MSTQ?

MSTQ has higher volatility (7.78%) compared to MSTB (3.90%). In terms of maximum drawdown, MSTB dropped -25.64% vs MSTQ's -31.05%.

Which ETF is better, MSTB or MSTQ?

On 3-year performance, MSTQ leads with 21.44% vs 17.08% for MSTB. On fees, MSTB is cheaper at 1.40% per year. On volatility, MSTB has been the lower-risk option at 3.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSTB or MSTQ?

Over the 3-year period, MSTQ has performed better with a 21.44% return vs 17.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSTB or MSTQ?

MSTB is cheaper with a 1.40% expense ratio, compared with 1.59% for MSTQ.

Which ETF pays a higher dividend yield, MSTB or MSTQ?

MSTQ has the higher dividend yield at 12.42%, compared with 0.39% for MSTB.

What is the main difference between MSTB and MSTQ?

MSTB is categorized as Equity Hedged, while MSTQ is Options Trading. Their fees differ too: 1.40% for MSTB and 1.59% for MSTQ.

Which has better risk-adjusted returns?

MSTQ currently has the higher Sharpe Ratio (1.68 vs 1.61), 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.