EFU vs QQQ
ProShares UltraShort MSCI EAFE 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 103 holdings.
Side-by-Side Comparison
| Metric | EFU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.18% | |
| AUM | $1M | $455.8B | |
| Dividend Yield | 5.01% | 0.41% | |
| Holdings | 5 | 108 | |
| YTD Return | -23.17% | +18.31% | |
| 1Y Return | -32.90% | +25.37% | |
| 3Y Return (annualized) | -26.77% | +25.79% | |
| 5Y Return (annualized) | -17.02% | +15.20% | |
| Volatility (annualized) | 33.3% | 30.6% | |
| Max Drawdown | -99.5% | -83.0% | |
| Fund Family | ProShares | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Oct 23, 2007 | Mar 10, 1999 |
EFU vs QQQ Performance
ProShares UltraShort MSCI EAFE (EFU) is a ETF from ProShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EFU returned -32.90% while QQQ returned +25.37%. Year to date, EFU is down 23.17% versus a gain of 18.31% for QQQ.
Over three years, EFU compounded at -26.77% per year against +25.79% for QQQ; over five years the annualized figures are -17.02% and +15.20% respectively. Across the full 19-year window we track, QQQ has the edge at +13.10% annualized vs -20.42%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EFU has been the more volatile fund, with annualized monthly volatility of 33.3% 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 -99.5% for EFU 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 -0.72. They move independently enough that combining them can meaningfully diversify a portfolio.
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 5.01% against 0.41% for QQQ.
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. On a $10,000 investment, that is $77 per year of difference.
Which performed better, EFU or QQQ?
Over the past year EFU returned -32.90% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), EFU annualized -20.42% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, EFU or QQQ?
EFU has been the more volatile fund at 33.3% annualized versus 30.6% for QQQ. Worst drawdown: EFU -99.5% vs QQQ -83.0%.
Should I hold both EFU and QQQ?
EFU and QQQ have a monthly-return correlation of -0.72, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, EFU or QQQ?
EFU yields 5.01% while QQQ yields 0.41%, so EFU currently pays the higher dividend yield.
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