EDZ vs QQQ
Direxion Daily MSCI Emerging Markets Bear 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 | EDZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.05% | 0.18% | |
| AUM | $21M | $496.3B | |
| Dividend Yield | 4.26% | 0.44% | |
| Holdings | 4 | 108 | |
| YTD Return | -52.90% | +19.52% | |
| 1Y Return | -68.16% | +26.68% | |
| 3Y Return (annualized) | -48.73% | +26.64% | |
| 5Y Return (annualized) | -28.24% | +15.36% | |
| Volatility (annualized) | 53.8% | 30.6% | |
| Max Drawdown | -100.0% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 17, 2008 | Mar 10, 1999 |
EDZ vs QQQ Performance
Direxion Daily MSCI Emerging Markets Bear 3X ETF (EDZ) 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 EDZ returned -68.16% while QQQ returned +26.68%. Year to date, EDZ is down 52.90% versus a gain of 19.52% for QQQ.
Over three years, EDZ compounded at -48.73% per year against +26.64% for QQQ; over five years the annualized figures are -28.24% and +15.36% respectively. Across the full 18-year window we track, QQQ has the edge at +13.14% annualized vs -40.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EDZ has been the more volatile fund, with annualized monthly volatility of 53.8% 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 EDZ 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 -0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EDZ charges 1.05% per year while QQQ charges 0.18%. On a $10,000 position that is $105 vs $18 annually, a gap of $87 per year that compounds over a long holding period. On income, EDZ currently yields 4.26% against 0.44% for QQQ.
Holdings Overlap
EDZ and QQQ share 0 holdings out of 104 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, EDZ or QQQ?
EDZ has an expense ratio of 1.05% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $87 per year of difference.
Which performed better, EDZ or QQQ?
Over the past year EDZ returned -68.16% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (18 years), EDZ annualized -40.31% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, EDZ or QQQ?
EDZ has been the more volatile fund at 53.8% annualized versus 30.6% for QQQ. Worst drawdown: EDZ -100.0% vs QQQ -83.0%.
Should I hold both EDZ and QQQ?
EDZ and QQQ have a monthly-return correlation of -0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EDZ and QQQ?
EDZ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, EDZ or QQQ?
EDZ yields 4.26% while QQQ yields 0.44%, so EDZ currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.