QQQ vs. MSFT

Last updated Jun 6, 2026

QQQ (Invesco QQQ ETF) is Nasdaq-100 fund tracking the NASDAQ-100 Index, while MSFT (Microsoft Corporation) is a stock. Over the past 10 years, QQQ returned 21.27%/yr vs 24.64%/yr for MSFT. A 0.73 correlation means they provide meaningful diversification when combined.

Performance

QQQ vs. MSFT - Performance Comparison

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

Returns By Period

In the year-to-date period, QQQ achieves a 14.92% return, which is significantly higher than MSFT's -13.46% return. Over the past 10 years, QQQ has underperformed MSFT with an annualized return of 21.27%, while MSFT has yielded a comparatively higher 24.64% annualized return.

QQQ

• 1D: -4.80%
• 1M: 1.34%
• YTD: 14.92%
• 6M: 13.01%
• 1Y: 35.00%
• 3Y*: 26.46%
• 5Y*: 16.70%
• 10Y*: 21.27%

MSFT

• 1D: -2.66%
• 1M: 0.87%
• YTD: -13.46%
• 6M: -13.38%
• 1Y: -10.20%
• 3Y*: 8.53%
• 5Y*: 11.60%
• 10Y*: 24.64%

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

QQQ vs. MSFT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QQQ Invesco QQQ ETF	14.92%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%
MSFT Microsoft Corporation	-13.46%	15.58%	12.93%	58.19%	-28.02%	52.48%	42.53%	57.56%	20.80%	40.73%

Correlation

The correlation between QQQ and MSFT is 0.50, 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	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since Mar 11, 1999	0.73

Over the past year, the correlation between QQQ and MSFT has dropped to 0.50 - well below their long-term average of 0.73, suggesting their price drivers have been diverging.

Return for Risk

QQQ vs. MSFT — Risk / Return Rank

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

QQQ

QQQ Risk / Return Rank: 62
QQQ Sharpe Ratio Rank: 65
QQQ Sortino Ratio Rank: 58
QQQ Omega Ratio Rank: 62
QQQ Calmar Ratio Rank: 60
QQQ Martin Ratio Rank: 63

MSFT

MSFT Risk / Return Rank: 26
MSFT Sharpe Ratio Rank: 24
MSFT Sortino Ratio Rank: 22
MSFT Omega Ratio Rank: 22
MSFT Calmar Ratio Rank: 32
MSFT Martin Ratio Rank: 30

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. MSFT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ ETF (QQQ) and Microsoft Corporation (MSFT). 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.

	QQQ	MSFT	Difference
Sharpe ratio: Return per unit of total volatility	2.11	-0.41	+2.52
Sortino ratio: Return per unit of downside risk	2.72	-0.40	+3.12
Omega ratio: Gain probability vs. loss probability	1.37	0.95	+0.42
Calmar ratio: Return relative to maximum drawdown	2.94	-0.30	+3.24
Martin ratio: Return relative to average drawdown	11.22	-0.64	+11.86
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QQQ vs. MSFT - Sharpe Ratio Comparison

The current QQQ Sharpe Ratio is 2.11, which is higher than the MSFT Sharpe Ratio of -0.41. The chart below compares the historical Sharpe Ratios of QQQ and MSFT, 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

	QQQ	MSFT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.11	-0.41	+2.52
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.75	0.44	+0.31
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.95	0.91	+0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.74	-0.34

Drawdowns

QQQ vs. MSFT - Drawdown Comparison

The maximum QQQ drawdown since its inception was -82.97%, which is greater than MSFT's maximum drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for QQQ and MSFT.

Drawdown Indicators

	QQQ	MSFT	Difference
Max Drawdown Largest peak-to-trough decline	-82.97%	-69.38%	-13.59%
Max Drawdown (1Y) Largest decline over 1 year	-11.96%	-33.91%	+21.95%
Max Drawdown (3Y) Largest decline over 3 years	-22.77%	-33.91%	+11.14%
Max Drawdown (5Y) Largest decline over 5 years	-35.12%	-37.15%	+2.03%
Max Drawdown (10Y) Largest decline over 10 years	-35.12%	-37.15%	+2.03%
Current Drawdown Current decline from peak	-5.51%	-22.65%	+17.14%
Average Drawdown Average peak-to-trough decline	-32.78%	-21.78%	-11.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.13%	16.07%	-12.94%

Volatility

QQQ vs. MSFT - Volatility Comparison

The current volatility for Invesco QQQ ETF (QQQ) is 6.68%, while Microsoft Corporation (MSFT) has a volatility of 10.32%. This indicates that QQQ experiences smaller price fluctuations and is considered to be less risky than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QQQ	MSFT	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.68%	10.32%	-3.64%
Volatility (6M) Calculated over the trailing 6-month period	13.12%	22.34%	-9.22%
Volatility (1Y) Calculated over the trailing 1-year period	16.69%	25.25%	-8.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.47%	26.63%	-4.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.34%	27.05%	-4.71%

Dividends

QQQ vs. MSFT - Dividend Comparison

QQQ's dividend yield for the trailing twelve months is around 0.40%, less than MSFT's 0.85% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSFT Microsoft Corporation	0.85%	0.70%	0.73%	0.74%	1.06%	0.68%	0.94%	1.20%	1.69%	1.86%	2.37%	2.33%
QQQ Invesco QQQ ETF	0.40%	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 MSFT in my portfolio?

QQQ and MSFT have a correlation of 0.50, 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 MSFT?

MSFT has higher volatility (10.32%) compared to QQQ (6.68%). In terms of maximum drawdown, QQQ dropped -82.97% vs MSFT's -69.38%.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.11 vs -0.41), 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.