DFEN vs QQQ
Direxion Daily Aerospace & Defense Bull 3X ETF vs Invesco QQQ Trust, Series 1
Which is better, DFEN or QQQ?
Multi Alternative against Large Cap Growth.
QQQ has a lower expense ratio. DFEN led over 3Y and 5Y, QQQ over 1Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 79.5%.
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
| Metric | DFEN | QQQ |
|---|---|---|
| Expense Ratio | 0.96% | 0.18%Best |
| AUM | $322M | $483.5B |
| Dividend Yield | 7.52% | 0.44% |
| Holdings | 59 | 107 |
| YTD Return | -25.82% | +21.18%Best |
| 1Y Return | -12.98% | +24.36%Best |
| 3Y Return (annualized) | +56.99%Best | +27.99% |
| 5Y Return (annualized) | +23.54%Best | +15.39% |
| Volatility (annualized) | 66.9% | 19.6%Best |
| Max Drawdown | -91.4% | -35.1%Best |
| $10,000 over 5 years | $28,777Best | $20,457 |
| Top 10 Weight | 79.5% | 46.5%Best |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) |
| Category | Alternative | Equity |
| Style | Multi Alternative | Large Cap Growth |
| Inception | May 3, 2017 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: May 3, 2017 to Sep 23, 2026 (9.4 years).
DFEN 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 9.4 years both funds cover.
DFEN vs QQQ Performance
Direxion Daily Aerospace & Defense Bull 3X ETF (DFEN) 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 DFEN returned -12.98% while QQQ returned +24.36%. Year to date, DFEN is down 25.82% versus a gain of 21.18% for QQQ.
Over three years, DFEN compounded at +56.99% per year against +27.99% for QQQ; over five years the annualized figures are +23.54% and +15.39% respectively. Across the full 9-year window we track, QQQ has the edge at +20.11% annualized vs +10.06%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFEN has been the more volatile fund, with annualized monthly volatility of 66.9% compared with 19.6% 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 -91.4% for DFEN and -35.1% 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 0.52. They move together some of the time, and apart the rest.
Fees and Cost Over Time
DFEN 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, DFEN currently yields 7.52% against 0.44% for QQQ.
Holdings Overlap
4.0% of DFEN's money is in holdings QQQ also owns. 0.4% of QQQ's money is in holdings DFEN also owns.
DFEN and QQQ share little of their money.
2 positions in common, counted across the 50 positions we hold weights for in DFEN and 102 in QQQ, against full books of 59 and 107.
What only one of them owns
Our book lists 94 positions for QQQ that do not appear in our book for DFEN (97.1% of the fund), and 47 for DFEN that do not appear in QQQ (98.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of DFEN and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DFEN or QQQ?
DFEN 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, DFEN or QQQ?
Over the past year DFEN returned -12.98% vs +24.36% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), DFEN annualized +10.06% vs +20.11% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFEN or QQQ?
DFEN has been the more volatile fund at 66.9% annualized versus 19.6% for QQQ. Worst drawdown: DFEN -91.4% vs QQQ -35.1%.
Should I hold both DFEN and QQQ?
DFEN and QQQ have a monthly-return correlation of 0.52, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between DFEN and QQQ?
4.0% of DFEN's money is in holdings QQQ also owns. 0.4% of QQQ's is in holdings DFEN also owns. They hold 2 positions in common, counted across the 50 positions we hold weights for in DFEN and 102 in QQQ.
Which pays a higher dividend, DFEN or QQQ?
DFEN yields 7.52% while QQQ yields 0.44%, so DFEN currently pays the higher dividend yield.
Is QQQ better than DFEN?
QQQ has a lower expense ratio. DFEN led over 3Y and 5Y, QQQ over 1Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 79.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.