EFU vs QQQ

EFU vs QQQ

Which is better, EFU or QQQ?

Opposite sides of the same exposure.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.72, so holding both offsets the exposure while paying both fees.

Lower Fees: QQQHigher Returns: QQQ

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricEFUQQQ
Expense Ratio0.95%0.18%Best
AUM$1M$483.5B
Dividend Yield5.17%0.44%
Holdings4107
YTD Return-17.52%+15.21%Best
1Y Return-24.90%+19.78%Best
3Y Return (annualized)-25.82%+24.58%Best
5Y Return (annualized)-15.52%+13.93%Best
Volatility (annualized)33.2%19.0%Best
Max Drawdown--53.5%
$10,000 over 5 years$4,303$19,195Best
Fund FamilyProSharesInvesco (US)
CategoryAlternativeEquity
StyleTrading-Inverse EquityLarge Cap Growth
InceptionOct 23, 2007Mar 10, 1999

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Oct 25, 2007 to Sep 16, 2026 (18.9 years).

EFU vs QQQ growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 18.9 years both funds cover.

EFU vs QQQ Performance

ProShares UltraShort MSCI EAFE (EFU) is an ETF from ProShares and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year EFU returned -24.90% while QQQ returned +19.78%. Year to date, EFU is down 17.52% versus a gain of 15.21% for QQQ.

Over three years, EFU compounded at -25.82% per year against +24.58% for QQQ; over five years the annualized figures are -15.52% and +13.93% respectively. Across the full 19-year window we track, QQQ has the edge at +14.87% annualized vs -20.03%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EFU has been the more volatile fund, with annualized monthly volatility of 33.2% compared with 19.0% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The two funds' monthly returns correlate at -0.72. They move opposite each other. Holding both offsets the exposure rather than spreading it, while paying both funds' fees.

Fees and Cost Over Time

EFU 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, EFU currently yields 5.17% against 0.44% for QQQ.

You are not choosing between two funds in isolation.

Whichever of EFU and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

EFUQQQ

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Frequently Asked Questions

Which is cheaper, EFU or QQQ?

EFU has an expense ratio of 0.95% while QQQ charges 0.18%. QQQ is the cheaper option, by $77 a year on a $10,000 investment.

Which performed better, EFU or QQQ?

Over the past year EFU returned -24.90% vs +19.78% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), EFU annualized -20.03% vs +14.87% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, EFU or QQQ?

EFU has been the more volatile fund at 33.2% annualized versus 19.0% for QQQ.

Should I hold both EFU and QQQ?

EFU and QQQ have a monthly-return correlation of -0.72, so they move opposite each other. Holding both offsets the exposure rather than spreading it, and pays both funds' fees on the way. This is information, not a recommendation.

Which pays a higher dividend, EFU or QQQ?

EFU yields 5.17% while QQQ yields 0.44%, so EFU currently pays the higher dividend yield.

Is QQQ better than EFU?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.72, so holding both offsets the exposure while paying both fees. Which one suits a particular account depends on what it is for. This is information, not a recommendation.