ERY vs QQQ
Direxion Daily Energy Bear 2X 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 | ERY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.99% | 0.18% | |
| AUM | $39M | $496.3B | |
| Dividend Yield | 3.49% | 0.44% | |
| Holdings | 7 | 108 | |
| YTD Return | -52.08% | +16.64% | |
| 1Y Return | -58.21% | +27.27% | |
| 3Y Return (annualized) | -27.84% | +25.96% | |
| 5Y Return (annualized) | -43.14% | +14.54% | |
| Volatility (annualized) | 59.7% | 30.6% | |
| Max Drawdown | -100.0% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Nov 6, 2008 | Mar 10, 1999 |
ERY vs QQQ Performance
Direxion Daily Energy Bear 2X ETF (ERY) 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 ERY returned -58.21% while QQQ returned +27.27%. Year to date, ERY is down 52.08% versus a gain of 16.64% for QQQ.
Over three years, ERY compounded at -27.84% per year against +25.96% for QQQ; over five years the annualized figures are -43.14% and +14.54% respectively. Across the full 18-year window we track, QQQ has the edge at +13.03% annualized vs -40.41%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ERY has been the more volatile fund, with annualized monthly volatility of 59.7% 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 ERY 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 -0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ERY charges 0.99% per year while QQQ charges 0.18%. On a $10,000 position that is $99 vs $18 annually, a gap of $81 per year that compounds over a long holding period. On income, ERY currently yields 3.49% against 0.44% for QQQ.
Holdings Overlap
ERY and QQQ share 0 holdings out of 105 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, ERY or QQQ?
ERY has an expense ratio of 0.99% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $81 per year of difference.
Which performed better, ERY or QQQ?
Over the past year ERY returned -58.21% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (18 years), ERY annualized -40.41% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, ERY or QQQ?
ERY has been the more volatile fund at 59.7% annualized versus 30.6% for QQQ. Worst drawdown: ERY -100.0% vs QQQ -83.0%.
Should I hold both ERY and QQQ?
ERY and QQQ have a monthly-return correlation of -0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ERY and QQQ?
ERY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, ERY or QQQ?
ERY yields 3.49% while QQQ yields 0.44%, so ERY currently pays the higher dividend yield.
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