QQQ vs. MS

Last updated Jun 14, 2026

QQQ (Invesco QQQ ETF) is Nasdaq-100 fund tracking the NASDAQ-100 Index, while MS (Morgan Stanley) is a stock. Over the past 10 years, QQQ returned 21.79%/yr vs 27.71%/yr for MS. A 0.55 correlation means they provide meaningful diversification when combined.

Performance

QQQ vs. MS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco QQQ ETF (QQQ) and Morgan Stanley (MS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QQQ achieves a 17.57% return, which is significantly lower than MS's 21.88% return. Over the past 10 years, QQQ has underperformed MS with an annualized return of 21.79%, while MS has yielded a comparatively higher 27.71% annualized return.

QQQ

• 1D: 0.59%
• 1M: 1.75%
• YTD: 17.57%
• 6M: 17.85%
• 1Y: 37.55%
• 3Y*: 26.43%
• 5Y*: 16.85%
• 10Y*: 21.79%

MS

• 1D: 0.65%
• 1M: 11.18%
• YTD: 21.88%
• 6M: 21.28%
• 1Y: 69.28%
• 3Y*: 38.69%
• 5Y*: 22.26%
• 10Y*: 27.71%

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

QQQ vs. MS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QQQ Invesco QQQ ETF	17.57%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%
MS Morgan Stanley	21.88%	45.16%	39.73%	13.93%	-10.34%	46.65%	38.09%	32.67%	-22.76%	26.61%

Correlation

The correlation between QQQ and MS is 0.59, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.50
Correlation (5Y) Calculated over the trailing 5-year period	0.54
Correlation (10Y) Calculated over the trailing 10-year period	0.51
Correlation (All Time) Calculated using the full available price history since Mar 10, 1999	0.55

The correlation between QQQ and MS has been stable across timeframes, ranging from 0.50 to 0.59 - a consistent structural relationship.

Return for Risk

QQQ vs. MS — Risk / Return Rank

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

QQQ

QQQ Risk / Return Rank: 71
QQQ Sharpe Ratio Rank: 75
QQQ Sortino Ratio Rank: 70
QQQ Omega Ratio Rank: 73
QQQ Calmar Ratio Rank: 69
QQQ Martin Ratio Rank: 70

MS

MS Risk / Return Rank: 91
MS Sharpe Ratio Rank: 94
MS Sortino Ratio Rank: 91
MS Omega Ratio Rank: 91
MS Calmar Ratio Rank: 87
MS Martin Ratio Rank: 91

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.

QQQ vs. MS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ ETF (QQQ) and Morgan Stanley (MS). 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.

	QQQ	MS	Difference
Sharpe ratio: Return per unit of total volatility	2.09	2.58	-0.48
Sortino ratio: Return per unit of downside risk	2.73	3.19	-0.46
Omega ratio: Gain probability vs. loss probability	1.37	1.43	-0.06
Calmar ratio: Return relative to maximum drawdown	3.01	3.53	-0.52
Martin ratio: Return relative to average drawdown	11.22	11.65	-0.43

QQQ vs. MS - Sharpe Ratio Comparison

The current QQQ Sharpe Ratio is 2.09, which is comparable to the MS Sharpe Ratio of 2.58. The chart below compares the historical Sharpe Ratios of QQQ and MS, 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

QQQ vs. MS - Drawdown Comparison

The maximum QQQ drawdown since its inception was -82.97%, smaller than the maximum MS drawdown of -88.12%. Use the drawdown chart below to compare losses from any high point for QQQ and MS.

Drawdown Indicators

	QQQ	MS	Difference
Max Drawdown Largest peak-to-trough decline	-82.97%	-88.12%	+5.15%
Max Drawdown (1Y) Largest decline over 1 year	-11.96%	-18.83%	+6.87%
Max Drawdown (3Y) Largest decline over 3 years	-22.77%	-29.24%	+6.47%
Max Drawdown (5Y) Largest decline over 5 years	-35.12%	-32.38%	-2.74%
Max Drawdown (10Y) Largest decline over 10 years	-35.12%	-51.33%	+16.21%
Current Drawdown Current decline from peak	-3.33%	-1.94%	-1.39%
Average Drawdown Average peak-to-trough decline	-32.75%	-33.69%	+0.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.20%	5.70%	-2.50%

Volatility

QQQ vs. MS - Volatility Comparison

The current volatility for Invesco QQQ ETF (QQQ) is 7.56%, while Morgan Stanley (MS) has a volatility of 8.62%. This indicates that QQQ experiences smaller price fluctuations and is considered to be less risky than MS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QQQ	MS	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.56%	8.62%	-1.06%
Volatility (6M) Calculated over the trailing 6-month period	13.81%	21.46%	-7.65%
Volatility (1Y) Calculated over the trailing 1-year period	17.19%	25.81%	-8.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.55%	28.75%	-6.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.38%	31.51%	-9.13%

Dividends

QQQ vs. MS - Dividend Comparison

QQQ's dividend yield for the trailing twelve months is around 0.39%, less than MS's 1.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MS Morgan Stanley	1.87%	2.17%	2.82%	3.49%	3.47%	2.14%	2.04%	2.54%	2.77%	1.72%	1.66%	1.73%
QQQ Invesco QQQ ETF	0.39%	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 QQQ and MS in my portfolio?

QQQ and MS have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QQQ or MS?

MS has higher volatility (8.62%) compared to QQQ (7.56%). In terms of maximum drawdown, QQQ dropped -82.97% vs MS's -88.12%.

Which has better risk-adjusted returns?

MS currently has the higher Sharpe Ratio (2.58 vs 2.09), 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.