DRN vs QQQ
Direxion Daily Real Estate Bull 3X 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 108 holdings.
Side-by-Side Comparison
| Metric | DRN | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.18% | |
| AUM | $47M | $496.3B | |
| Dividend Yield | 1.87% | 0.44% | |
| Holdings | 36 | 108 | |
| YTD Return | +30.81% | +17.07% | |
| 1Y Return | +18.64% | +26.39% | |
| 3Y Return (annualized) | +13.71% | +26.08% | |
| 5Y Return (annualized) | -11.88% | +15.18% | |
| Volatility (annualized) | 53.3% | 30.6% | |
| Max Drawdown | -86.3% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Jul 16, 2009 | Mar 10, 1999 |
DRN vs QQQ Performance
Direxion Daily Real Estate Bull 3X ETF (DRN) 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 DRN returned +18.64% while QQQ returned +26.39%. Year to date, DRN is up 30.81% versus a gain of 17.07% for QQQ.
Over three years, DRN compounded at +13.71% per year against +26.08% for QQQ; over five years the annualized figures are -11.88% and +15.18% respectively. Across the full 17-year window we track, QQQ has the edge at +13.05% annualized vs +11.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DRN has been the more volatile fund, with annualized monthly volatility of 53.3% 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 -86.3% for DRN 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DRN 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, DRN currently yields 1.87% against 0.44% for QQQ.
Holdings Overlap
DRN and QQQ share 0 holdings out of 135 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, DRN or QQQ?
DRN has an expense ratio of 0.96% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $78 per year of difference.
Which performed better, DRN or QQQ?
Over the past year DRN returned +18.64% vs +26.39% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), DRN annualized +11.75% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, DRN or QQQ?
DRN has been the more volatile fund at 53.3% annualized versus 30.6% for QQQ. Worst drawdown: DRN -86.3% vs QQQ -83.0%.
Should I hold both DRN and QQQ?
DRN and QQQ have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DRN and QQQ?
DRN and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 135 unique securities.
Which pays a higher dividend, DRN or QQQ?
DRN yields 1.87% while QQQ yields 0.44%, so DRN currently pays the higher dividend yield.
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