MSTQ vs. QQQ

Last updated Jun 23, 2026

MSTQ (LHA Market State Tactical Q ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - MSTQ is a Options Trading fund actively managed by Little Harbor Advisors, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. MSTQ is actively managed, while QQQ is passively managed. Over the past 3 years, MSTQ returned 22.64%/yr vs 27.47%/yr for QQQ. With a 0.96 correlation, they move nearly in lockstep. MSTQ charges 1.59%/yr vs 0.18%/yr for QQQ.

Performance

MSTQ vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in LHA Market State Tactical Q ETF (MSTQ) 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, MSTQ achieves a 15.85% return, which is significantly lower than QQQ's 20.41% return.

MSTQ

• 1D: -0.37%
• 1M: 2.19%
• YTD: 15.85%
• 6M: 14.73%
• 1Y: 31.60%
• 3Y*: 22.64%
• 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)

MSTQ vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
MSTQ LHA Market State Tactical Q ETF	15.85%	20.57%	19.58%	43.10%	-21.50%
QQQ Invesco QQQ ETF	20.41%	20.77%	25.58%	54.86%	-15.69%

Correlation

The correlation between MSTQ and QQQ is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (All Time) Calculated using the full available price history since Mar 15, 2022	0.96

The correlation between MSTQ and QQQ has been stable across timeframes, ranging from 0.95 to 0.96 - a consistent structural relationship.

Return for Risk

MSTQ vs. QQQ — Risk / Return Rank

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

MSTQ

MSTQ Risk / Return Rank: 57
MSTQ Sharpe Ratio Rank: 64
MSTQ Sortino Ratio Rank: 58
MSTQ Omega Ratio Rank: 61
MSTQ Calmar Ratio Rank: 53
MSTQ Martin Ratio Rank: 48

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.

MSTQ vs. QQQ - Risk-Adjusted Trends Comparison

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

	MSTQ	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.04	2.33	-0.29
Sortino ratio: Return per unit of downside risk	2.69	3.03	-0.34
Omega ratio: Gain probability vs. loss probability	1.36	1.41	-0.05
Calmar ratio: Return relative to maximum drawdown	2.56	3.44	-0.87
Martin ratio: Return relative to average drawdown	7.87	12.79	-4.92

MSTQ vs. QQQ - Sharpe Ratio Comparison

The current MSTQ Sharpe Ratio is 2.04, which is comparable to the QQQ Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of MSTQ 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

MSTQ vs. QQQ - Drawdown Comparison

The maximum MSTQ drawdown since its inception was -31.05%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for MSTQ and QQQ.

Drawdown Indicators

	MSTQ	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-31.05%	-82.97%	+51.92%
Max Drawdown (1Y) Largest decline over 1 year	-12.39%	-11.96%	-0.43%
Max Drawdown (3Y) Largest decline over 3 years	-15.22%	-22.77%	+7.55%
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	-1.52%	-0.99%	-0.53%
Average Drawdown Average peak-to-trough decline	-8.55%	-32.73%	+24.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.03%	3.21%	+0.82%

Volatility

MSTQ vs. QQQ - Volatility Comparison

The current volatility for LHA Market State Tactical Q ETF (MSTQ) is 7.14%, while Invesco QQQ ETF (QQQ) has a volatility of 8.47%. This indicates that MSTQ experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSTQ	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.14%	8.47%	-1.33%
Volatility (6M) Calculated over the trailing 6-month period	12.07%	14.20%	-2.13%
Volatility (1Y) Calculated over the trailing 1-year period	15.61%	17.67%	-2.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.01%	22.64%	-3.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.01%	22.43%	-3.42%

MSTQ vs. QQQ - Expense Ratio Comparison

MSTQ has a 1.59% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

MSTQ vs. QQQ - Dividend Comparison

MSTQ's dividend yield for the trailing twelve months is around 12.06%, more than QQQ's 0.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSTQ LHA Market State Tactical Q ETF	12.06%	13.97%	3.72%	0.77%	0.00%	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 MSTQ and QQQ in my portfolio?

With a correlation of 0.96, MSTQ and QQQ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, MSTQ or QQQ?

QQQ has higher volatility (8.47%) compared to MSTQ (7.14%). In terms of maximum drawdown, MSTQ dropped -31.05% vs QQQ's -82.97%.

Which ETF is better, MSTQ or QQQ?

On 3-year performance, QQQ leads with 27.47% vs 22.64% for MSTQ. On fees, QQQ is cheaper at 0.18% per year. On volatility, MSTQ has been the lower-risk option at 7.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSTQ or QQQ?

Over the 3-year period, QQQ has performed better with a 27.47% return vs 22.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSTQ or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 1.59% for MSTQ.

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

MSTQ has the higher dividend yield at 12.06%, compared with 0.49% for QQQ.

What is the main difference between MSTQ and QQQ?

MSTQ is categorized as Options Trading, while QQQ is Nasdaq-100. They also come from different issuers: Little Harbor Advisors and Invesco. Their fees differ too: 1.59% for MSTQ and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.33 vs 2.04), 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.