AIBU vs QQQ

AIBU vs QQQ

Which is better, AIBU or QQQ?

Leverage Strategy against Large Cap Growth.

QQQ has a lower expense ratio. AIBU led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.95.

Lower Fees: QQQHigher Returns: AIBU

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricAIBUQQQ
Expense Ratio0.96%0.18%Best
AUM$24M$486.1B
Dividend Yield1.85%0.44%
Holdings38107
YTD Return+31.52%Best+17.54%
1Y Return+40.58%Best+25.59%
3Y Return (annualized)-+24.63%
5Y Return (annualized)-+14.18%
Volatility (annualized)56.1%17.6%Best
Max Drawdown-51.2%-22.8%Best
$10,000 over 2.3 years$25,947Best$16,050
Fund FamilyDirexion Shares ETF TrustInvesco (US)
CategoryAlternativeEquity
StyleLeverage StrategyLarge Cap Growth
InceptionMay 15, 2024Mar 10, 1999

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 2.3 years row, are measured over the window both funds cover: May 15, 2024 to Sep 4, 2026 (2.3 years).

AIBU vs QQQ growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.3 years both funds cover.

AIBU vs QQQ Performance

Direxion Daily AI and Big Data Bull 2X ETF (AIBU) is an ETF from Direxion Shares ETF Trust and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year AIBU returned +40.58% while QQQ returned +25.59%. Year to date, AIBU is up 31.52% versus a gain of 17.54% for QQQ.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

AIBU has been the more volatile fund, with annualized monthly volatility of 56.1% compared with 17.6% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -51.2% for AIBU and -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

AIBU charges 0.96% per year while QQQ charges 0.18%. On a $10,000 position that is $96 vs $18 annually, a gap of $78 per year that compounds over a long holding period. On income, AIBU currently yields 1.85% against 0.44% for QQQ.

Holdings Overlap

QQQ already in AIBU43.4%

At least 43.4% of QQQ's money is in holdings AIBU also owns.

Stated as a floor: for AIBU, our book for it covers 93.7% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

The two portfolios partly overlap.

13 positions in common, counted across the 33 positions we hold weights for in AIBU and 102 in QQQ, against full books of 38 and 107.

Top Shared Holdings

StockWeight in AIBUWeight in QQQDifference
NVDANvidia Corp.5.16%8.44%3.28%
MSFTMicrosoft Corp 4.100 Feb 06 376.18%5.76%0.42%
AAPLApple, Inc4.58%7.27%2.69%
AMZNAmazon.Com Inc5.55%4.67%0.88%
GOOGLAlphabet Inc.Class A5.38%3.36%2.02%
AMDAdvanced Micro Devices Inc3.10%3.45%0.35%
AVGOBroadcom Inc3.34%3.16%0.18%
METAMeta Platform Inc 2.70%2.78%0.08%
INTCIntel Corporation3.15%2.23%0.92%
PLTRPalantir Technologies Inc3.64%1.60%2.04%

43.4% of QQQ is already inside AIBU.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

AIBUQQQ

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Frequently Asked Questions

Which is cheaper, AIBU or QQQ?

AIBU has an expense ratio of 0.96% while QQQ charges 0.18%. QQQ is the cheaper option, by $78 a year on a $10,000 investment.

Which performed better, AIBU or QQQ?

Over the past year AIBU returned +40.58% vs +25.59% for QQQ, so AIBU leads on 1-year performance. Over the longest common window we track (2 years), AIBU annualized +51.37% vs +22.84% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, AIBU or QQQ?

AIBU has been the more volatile fund at 56.1% annualized versus 17.6% for QQQ. Worst drawdown: AIBU -51.2% vs QQQ -22.8%.

Should I hold both AIBU and QQQ?

AIBU and QQQ have a monthly-return correlation of 0.95, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between AIBU and QQQ?

At least 43.4% of QQQ's money is in holdings AIBU also owns. Our book for AIBU is partial, so the real figure is this or higher. They hold 13 positions in common, counted across the 33 positions we hold weights for in AIBU and 102 in QQQ.

Which pays a higher dividend, AIBU or QQQ?

AIBU yields 1.85% while QQQ yields 0.44%, so AIBU currently pays the higher dividend yield.

Is QQQ better than AIBU?

QQQ has a lower expense ratio. AIBU led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.95. Which one suits a particular account depends on what it is for. This is information, not a recommendation.