At a glance
MSTQ charges 1.55% a year, above the 0.86% average of the 7 funds most like it (the most expensive of 8). It has $38.9M in assets, the 8th largest of that group; it paid 12.42% of its price in distributions over the past 12 months, annual. Over the past year it returned +8.1% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +23.3% a year.
The short version
LHA Market State Tactical Q ETF (MSTQ) is an actively managed fund from Little Harbor Advisors. It mainly holds the Invesco QQQ Trust, which tracks the Nasdaq-100, alongside Treasury bills, cash and futures. A daily volatility signal moves its growth-stock exposure, usually between about 80% and 120%, and can add hedges linked to the VIX volatility index when markets turn jumpy. The approach costs 1.55% a year, which is high for an ETF.
Price history
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MSTQ +8.1% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| MSTQ official prospectus, to Dec 31, 2025 | — | +20.20% | — | — | — | +13.87% |
| MSTQ price data to Oct 27, 2026 | +12.4% | +8.1% | +23.3% | — | — | +13.2% |
- Over the year to Oct 27, 2026, MSTQ returned +8.1%, 8th of 8 among similar funds.
- Its worst full calendar year was 2024 (+19.6%); its best was 2023 (+43.1%).
- The deepest fall in its price history was 31% (Mar 29, 2022 to Dec 28, 2022), recovered by Dec 18, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +12.4% | — |
| 2025 | +20.6% | +20.20% |
| 2024 | +19.6% | +19.54% |
| 2023 | +43.1% | +42.82% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $4.8200 | +298.3% |
| 2024 | $1.2100 | +450.0% |
| 2023 | $0.2200 |
What's inside
As of Jun 30, 2026, the fund held 3 securities; the ten largest made up 76.36% of assets, and 23.69% sat in cash and money-market holdings.
| Fund held | Weight | |
|---|---|---|
| Invesco QQQ Trust Series 1 | 64.02% | |
| TREASURY BILL Bonds and notes | 7.56% | |
| TREASURY BILL Bonds and notes | 4.78% |
By country
United States 76.36%By asset type
Stocks 64.02%Bonds and notes 12.34%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +13.60%, +8.85%, -0.88%.
How it works
The fund aims to beat large US growth stocks over the long run. Its starting point is about 100% exposure to growth stocks. It gets that exposure mostly through the Invesco QQQ Trust, which holds 100 of the largest non-financial companies on the Nasdaq. It can also use Nasdaq-100 E-mini futures, options, and other ETFs, including leveraged and inverse ones. As of June 30, 2026, QQQ made up 64.0% of net assets, two Treasury bills 12.3% and cash 23.7%. The fund also held a September 2026 Nasdaq-100 futures contract.
The signal comes from statistical models built by Thompson Capital Management, which Little Harbor licenses exclusively. The models compare 30-day and 90-day implied volatility (the market's expected price swings, read from option prices) and VIX futures. When short-term expectations rise above longer-term ones, the fund turns "hedge on": it cuts growth exposure and buys VIX call options or call spreads. The managers review the signal daily and pick the instruments themselves.
Futures add leverage, so losses on them can exceed the money put in. The fund may also sell covered calls on its holdings for extra income, which caps gains on that portion. Hedges cost money, and purchased options can expire worthless.
What it really costs
- MSTQ charges 1.55% a year, versus an average of 0.86% for the similar funds below (8th of 8, cheapest first).
- Of that, 1.1% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $158 in the first year and $1,845 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| MSTQ | $158 | $490 | $845 | $1,845 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
It is an actively traded, derivatives-based bet on Nasdaq-100 growth stocks with a high fee, not a defensive or income fund.
MSTQ launched in March 2022, so it has no record in the 2008 crisis or the 2020 crash, and it missed the start of the 2022 bear market. Even so, it fell about 31% from March 29 to December 28, 2022. It took about 11.7 months to get back to its old peak, in December 2023. Anyone who had to sell in late 2022 would have locked in that loss. Every full calendar year since has been positive, from 19.54% in 2024 to 42.82% in 2023, according to the prospectus. Its one-year beta of 1.28 suggests it swings more than the market.
Income is lumpy. The fund pays once a year, and its trailing yield was 12.42% as of October 27, 2026, a level that may not repeat. In the SEC's $10,000 example, the 1.55% fee adds up to $1,845 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want Nasdaq-100 growth exposure with a rules-based attempt to cut risk when short-term volatility jumps.
- People who keep a small satellite slice for an active, VIX-driven strategy next to low-cost core index funds.
- Holders who could sit through a drop like the 31% fall in 2022 without needing to sell shares.
Look elsewhere if
- Cost-focused investors: the 1.55% expense ratio works out to $158 in year one in the SEC's $10,000 example.
- Anyone who wants steady income: it pays once a year, and options income is usually taxed as ordinary income.
- People who want a long track record or a large fund: it launched in 2022 and held $38.9 million as of June 30, 2026.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| MSTQ this fund | 1.55% | $38.9M | +8.1% | +23.3% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
What's the difference between MSTQ and QQQ?
QQQ simply tracks the Nasdaq-100. MSTQ owns QQQ but wraps it in an active strategy. As of June 30, 2026, QQQ made up 64.0% of MSTQ's assets, with the rest in Treasury bills, cash and a Nasdaq-100 futures contract. Each day, a volatility signal adjusts MSTQ's growth exposure, usually between about 80% and 120%. It can also add VIX hedges or sell covered calls. MSTQ charges 1.55% a year for this extra layer, on top of what it holds.
What is MSTQ's expense ratio?
MSTQ's expense ratio is 1.55%, according to the prospectus filed April 24, 2026. That includes a 1.10% management fee. In the SEC's standard example, with $10,000 invested and a 5% annual return, costs come to about $158 after one year, $845 after five years and $1,845 after ten. That is above the 0.79% to 0.95% charged by the large buffer ETFs it is often compared with, though those funds use a different strategy.
Does MSTQ pay a dividend?
Yes, but only once a year. Over the 12 months to October 27, 2026, it paid $4.82 per share, a trailing yield of 12.42%. A single annual payment can vary a lot, so that figure may not repeat. Some of the fund's income may come from selling options. That income is usually taxed as ordinary income rather than at the lower rate for qualified dividends. Its distributions don't make it a reliable source of steady monthly or quarterly cash.
How has MSTQ performed since launch?
MSTQ has done well since 2022, after a rough first year. The prospectus shows returns of 42.82% in 2023, 19.54% in 2024 and 20.2% in 2025. Its average annual return since its March 2022 launch was 13.87% through December 31, 2025. Based on price, it gained 8.1% over the year to October 27, 2026. Its strongest quarter was up 20.37% and its weakest was down 8.03%, both in 2025.
Did MSTQ protect against losses in 2022?
Not much. Even with its volatility hedge, MSTQ fell about 31% between March 29 and December 28, 2022. It recovered its prior peak by December 18, 2023, about 11.7 months later. The fund launched after the 2022 bear market had started and didn't exist during the 2008 or 2020 crashes. It also uses futures, which add leverage, and its one-year beta of 1.28 points to bigger swings than the broad market.