EDC vs QQQ
Direxion Daily MSCI Emerging Markets Bull 3X ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. EDC delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | EDC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.09% | 0.18% | |
| AUM | $168M | $496.3B | |
| Dividend Yield | 1.52% | 0.44% | |
| Holdings | 10 | 108 | |
| YTD Return | +34.11% | +19.52% | |
| 1Y Return | +87.47% | +26.68% | |
| 3Y Return (annualized) | +44.23% | +26.64% | |
| 5Y Return (annualized) | +0.46% | +15.36% | |
| Volatility (annualized) | 58.6% | 30.6% | |
| Max Drawdown | -92.9% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 17, 2008 | Mar 10, 1999 |
EDC vs QQQ Performance
Direxion Daily MSCI Emerging Markets Bull 3X ETF (EDC) 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 EDC returned +87.47% while QQQ returned +26.68%. Year to date, EDC is up 34.11% versus a gain of 19.52% for QQQ.
Over three years, EDC compounded at +44.23% per year against +26.64% for QQQ; over five years the annualized figures are +0.46% and +15.36% respectively. Across the full 18-year window we track, QQQ has the edge at +13.14% annualized vs -0.60%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EDC has been the more volatile fund, with annualized monthly volatility of 58.6% 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 -92.9% for EDC 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EDC charges 1.09% per year while QQQ charges 0.18%. On a $10,000 position that is $109 vs $18 annually, a gap of $91 per year that compounds over a long holding period. On income, EDC currently yields 1.52% against 0.44% for QQQ.
Holdings Overlap
EDC 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, EDC or QQQ?
EDC has an expense ratio of 1.09% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $91 per year of difference.
Which performed better, EDC or QQQ?
Over the past year EDC returned +87.47% vs +26.68% for QQQ, so EDC leads on 1-year performance. Over the longest common window we track (18 years), EDC annualized -0.60% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, EDC or QQQ?
EDC has been the more volatile fund at 58.6% annualized versus 30.6% for QQQ. Worst drawdown: EDC -92.9% vs QQQ -83.0%.
Should I hold both EDC and QQQ?
EDC and QQQ have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EDC and QQQ?
EDC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, EDC or QQQ?
EDC yields 1.52% while QQQ yields 0.44%, so EDC currently pays the higher dividend yield.
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