DUG vs QQQ
ProShares UltraShort Energy 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 | DUG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.18% | |
| AUM | $19M | $496.3B | |
| Dividend Yield | 4.55% | 0.44% | |
| Holdings | 7 | 108 | |
| YTD Return | -52.17% | +16.64% | |
| 1Y Return | -58.29% | +27.27% | |
| 3Y Return (annualized) | -28.58% | +25.96% | |
| 5Y Return (annualized) | -43.24% | +14.54% | |
| Volatility (annualized) | 47.9% | 30.6% | |
| Max Drawdown | -100.0% | -83.0% | |
| Fund Family | ProShares | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 30, 2007 | Mar 10, 1999 |
DUG vs QQQ Performance
ProShares UltraShort Energy (DUG) is a ETF from ProShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DUG returned -58.29% while QQQ returned +27.27%. Year to date, DUG is down 52.17% versus a gain of 16.64% for QQQ.
Over three years, DUG compounded at -28.58% per year against +25.96% for QQQ; over five years the annualized figures are -43.24% and +14.54% respectively. Across the full 20-year window we track, QQQ has the edge at +13.03% annualized vs -31.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DUG has been the more volatile fund, with annualized monthly volatility of 47.9% 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 -100.0% for DUG 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 -0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DUG charges 0.95% per year while QQQ charges 0.18%. On a $10,000 position that is $95 vs $18 annually, a gap of $77 per year that compounds over a long holding period. On income, DUG currently yields 4.55% against 0.44% for QQQ.
Holdings Overlap
DUG and QQQ share 0 holdings out of 103 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, DUG or QQQ?
DUG has an expense ratio of 0.95% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, DUG or QQQ?
Over the past year DUG returned -58.29% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), DUG annualized -31.50% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, DUG or QQQ?
DUG has been the more volatile fund at 47.9% annualized versus 30.6% for QQQ. Worst drawdown: DUG -100.0% vs QQQ -83.0%.
Should I hold both DUG and QQQ?
DUG and QQQ have a monthly-return correlation of -0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DUG and QQQ?
DUG and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, DUG or QQQ?
DUG yields 4.55% while QQQ yields 0.44%, so DUG currently pays the higher dividend yield.
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