DRIP vs QQQ
Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | DRIP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.01% | 0.18% | |
| AUM | $115M | $455.8B | |
| Dividend Yield | 29.55% | 0.41% | |
| Holdings | 8 | 108 | |
| YTD Return | -53.23% | +17.85% | |
| 1Y Return | -60.58% | +26.45% | |
| 3Y Return (annualized) | -24.02% | +26.07% | |
| 5Y Return (annualized) | -45.05% | +15.16% | |
| Volatility (annualized) | 91.5% | 30.6% | |
| Max Drawdown | -99.9% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | May 28, 2015 | Mar 10, 1999 |
DRIP vs QQQ Performance
Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X ETF (DRIP) is a ETF from Direxion Shares ETF Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DRIP returned -60.58% while QQQ returned +26.45%. Year to date, DRIP is down 53.23% versus a gain of 17.85% for QQQ.
Over three years, DRIP compounded at -24.02% per year against +26.07% for QQQ; over five years the annualized figures are -45.05% and +15.16% respectively. Across the full 11-year window we track, QQQ has the edge at +13.09% annualized vs -41.25%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DRIP has been the more volatile fund, with annualized monthly volatility of 91.5% compared with 30.6% 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 -99.9% for DRIP and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at -0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DRIP charges 1.01% per year while QQQ charges 0.18%. On a $10,000 position that is $101 vs $18 annually, a gap of $83 per year that compounds over a long holding period. On income, DRIP currently yields 29.55% against 0.41% for QQQ.
Holdings Overlap
DRIP and QQQ share 0 holdings out of 106 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DRIP or QQQ?
DRIP has an expense ratio of 1.01% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $83 per year of difference.
Which performed better, DRIP or QQQ?
Over the past year DRIP returned -60.58% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), DRIP annualized -41.25% vs +13.09% for QQQ. Past performance does not guarantee future results.
Which is riskier, DRIP or QQQ?
DRIP has been the more volatile fund at 91.5% annualized versus 30.6% for QQQ. Worst drawdown: DRIP -99.9% vs QQQ -83.0%.
Should I hold both DRIP and QQQ?
DRIP and QQQ have a monthly-return correlation of -0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DRIP and QQQ?
DRIP and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, DRIP or QQQ?
DRIP yields 29.55% while QQQ yields 0.41%, so DRIP currently pays the higher dividend yield.
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