MSTQ vs. QQQY

Last updated Jun 4, 2026

MSTQ (LHA Market State Tactical Q ETF) and QQQY (Defiance Nasdaq 100 Enhanced Options Income ETF) are both exchange-traded funds - MSTQ is a Options Trading fund actively managed by Little Harbor Advisors, while QQQY is a Nasdaq-100 fund actively managed by Defiance. Both are actively managed. Over the past year, MSTQ returned 31.81% vs 36.38% for QQQY. Their correlation of 0.86 suggests significant overlap in exposure. MSTQ charges 1.59%/yr vs 0.99%/yr for QQQY.

Performance

MSTQ vs. QQQY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in LHA Market State Tactical Q ETF (MSTQ) and Defiance Nasdaq 100 Enhanced Options Income ETF (QQQY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSTQ achieves a 17.40% return, which is significantly lower than QQQY's 19.07% return.

MSTQ

• 1D: -0.21%
• 1M: 9.02%
• YTD: 17.40%
• 6M: 15.69%
• 1Y: 31.81%
• 3Y*: 24.11%
• 5Y*: —
• 10Y*: —

QQQY

• 1D: -0.36%
• 1M: 9.64%
• YTD: 19.07%
• 6M: 19.11%
• 1Y: 36.38%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

MSTQ vs. QQQY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
MSTQ LHA Market State Tactical Q ETF	17.40%	20.57%	19.58%	7.43%
QQQY Defiance Nasdaq 100 Enhanced Options Income ETF	19.07%	14.96%	7.70%	7.22%

Correlation

The correlation between MSTQ and QQQY is 0.91, 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	0.91
Correlation (All Time) Calculated using the full available price history since Sep 15, 2023	0.86

The correlation between MSTQ and QQQY has been stable across timeframes, ranging from 0.86 to 0.91 - a consistent structural relationship.

Return for Risk

MSTQ vs. QQQY — Risk / Return Rank

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

MSTQ

MSTQ Risk / Return Rank: 59
MSTQ Sharpe Ratio Rank: 68
MSTQ Sortino Ratio Rank: 64
MSTQ Omega Ratio Rank: 64
MSTQ Calmar Ratio Rank: 52
MSTQ Martin Ratio Rank: 48

QQQY

QQQY Risk / Return Rank: 74
QQQY Sharpe Ratio Rank: 81
QQQY Sortino Ratio Rank: 73
QQQY Omega Ratio Rank: 80
QQQY Calmar Ratio Rank: 65
QQQY Martin Ratio Rank: 73

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. QQQY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for LHA Market State Tactical Q ETF (MSTQ) and Defiance Nasdaq 100 Enhanced Options Income ETF (QQQY). 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.

	MSTQ	QQQY	Difference
Sharpe ratio: Return per unit of total volatility	2.23	2.68	-0.44
Sortino ratio: Return per unit of downside risk	2.97	3.37	-0.41
Omega ratio: Gain probability vs. loss probability	1.39	1.49	-0.10
Calmar ratio: Return relative to maximum drawdown	2.58	3.28	-0.70
Martin ratio: Return relative to average drawdown	8.04	13.95	-5.91
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MSTQ vs. QQQY - Sharpe Ratio Comparison

The current MSTQ Sharpe Ratio is 2.23, which is comparable to the QQQY Sharpe Ratio of 2.68. The chart below compares the historical Sharpe Ratios of MSTQ and QQQY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	MSTQ	QQQY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.23	2.68	-0.44
Sharpe Ratio (All Time) Calculated using the full available price history	0.87	1.25	-0.38

Drawdowns

MSTQ vs. QQQY - Drawdown Comparison

The maximum MSTQ drawdown since its inception was -31.05%, which is greater than QQQY's maximum drawdown of -19.05%. Use the drawdown chart below to compare losses from any high point for MSTQ and QQQY.

Drawdown Indicators

	MSTQ	QQQY	Difference
Max Drawdown Largest peak-to-trough decline	-31.05%	-19.05%	-12.00%
Max Drawdown (1Y) Largest decline over 1 year	-12.39%	-11.14%	-1.25%
Max Drawdown (3Y) Largest decline over 3 years	-15.22%	—	—
Current Drawdown Current decline from peak	-0.21%	-0.36%	+0.15%
Average Drawdown Average peak-to-trough decline	-8.62%	-2.91%	-5.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.97%	2.61%	+1.36%

Volatility

MSTQ vs. QQQY - Volatility Comparison

LHA Market State Tactical Q ETF (MSTQ) and Defiance Nasdaq 100 Enhanced Options Income ETF (QQQY) have volatilities of 4.25% and 4.21%, 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.

Volatility by Period

	MSTQ	QQQY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.25%	4.21%	+0.04%
Volatility (6M) Calculated over the trailing 6-month period	10.58%	11.30%	-0.72%
Volatility (1Y) Calculated over the trailing 1-year period	14.35%	13.67%	+0.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.85%	14.75%	+4.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.85%	14.75%	+4.10%

MSTQ vs. QQQY - Expense Ratio Comparison

MSTQ has a 1.59% expense ratio, which is higher than QQQY's 0.99% expense ratio.

Dividends

MSTQ vs. QQQY - Dividend Comparison

MSTQ's dividend yield for the trailing twelve months is around 11.90%, less than QQQY's 34.34% yield.

Position	TTM	2025	2024	2023
MSTQ LHA Market State Tactical Q ETF	11.90%	13.97%	3.72%	0.77%
QQQY Defiance Nasdaq 100 Enhanced Options Income ETF	34.34%	45.34%	83.34%	20.64%

Frequently Asked Questions

Can I hold both MSTQ and QQQY in my portfolio?

With a correlation of 0.91, MSTQ and QQQY 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 QQQY?

MSTQ has higher volatility (4.25%) compared to QQQY (4.21%). In terms of maximum drawdown, MSTQ dropped -31.05% vs QQQY's -19.05%.

Which ETF is better, MSTQ or QQQY?

On 1-year performance, QQQY leads with 36.38% vs 31.81% for MSTQ. On fees, QQQY is cheaper at 0.99% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSTQ or QQQY?

Over the 1-year period, QQQY has performed better with a 36.38% return vs 31.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSTQ or QQQY?

QQQY is cheaper with a 0.99% expense ratio, compared with 1.59% for MSTQ.

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

QQQY has the higher dividend yield at 34.34%, compared with 11.90% for MSTQ.

What is the main difference between MSTQ and QQQY?

MSTQ is categorized as Options Trading, while QQQY is Nasdaq-100. They also come from different issuers: Little Harbor Advisors and Defiance. Their fees differ too: 1.59% for MSTQ and 0.99% for QQQY.

Which has better risk-adjusted returns?

QQQY currently has the higher Sharpe Ratio (2.68 vs 2.23), 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.