FAS vs QQQ
Direxion Daily Financial Bull 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 | FAS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.88% | 0.18% | |
| AUM | $2.5B | $496.3B | |
| Dividend Yield | 8.05% | 0.44% | |
| Holdings | 88 | 108 | |
| YTD Return | +5.55% | +16.64% | |
| 1Y Return | +15.42% | +27.27% | |
| 3Y Return (annualized) | +47.66% | +25.96% | |
| 5Y Return (annualized) | +11.26% | +14.54% | |
| Volatility (annualized) | 57.6% | 30.6% | |
| Max Drawdown | -94.8% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Nov 6, 2008 | Mar 10, 1999 |
FAS vs QQQ Performance
Direxion Daily Financial Bull 3X ETF (FAS) 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 FAS returned +15.42% while QQQ returned +27.27%. Year to date, FAS is up 5.55% versus a gain of 16.64% for QQQ.
Over three years, FAS compounded at +47.66% per year against +25.96% for QQQ; over five years the annualized figures are +11.26% and +14.54% respectively. Across the full 18-year window we track, QQQ has the edge at +13.03% annualized vs +10.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAS has been the more volatile fund, with annualized monthly volatility of 57.6% 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 -94.8% for FAS 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FAS charges 0.88% per year while QQQ charges 0.18%. On a $10,000 position that is $88 vs $18 annually, a gap of $70 per year that compounds over a long holding period. On income, FAS currently yields 8.05% against 0.44% for QQQ.
Holdings Overlap
FAS and QQQ share 1 holdings out of 181 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FAS | Weight in QQQ | Difference |
|---|---|---|---|
| PYPL | 0.36% | 0.22% | 0.14% |
Frequently Asked Questions
Which is cheaper, FAS or QQQ?
FAS has an expense ratio of 0.88% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, FAS or QQQ?
Over the past year FAS returned +15.42% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (18 years), FAS annualized +10.86% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, FAS or QQQ?
FAS has been the more volatile fund at 57.6% annualized versus 30.6% for QQQ. Worst drawdown: FAS -94.8% vs QQQ -83.0%.
Should I hold both FAS and QQQ?
FAS and QQQ have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FAS and QQQ?
FAS and QQQ share 1 common holdings with a 0.2% weight overlap. Combined, they hold 181 unique securities.
Which pays a higher dividend, FAS or QQQ?
FAS yields 8.05% while QQQ yields 0.44%, so FAS currently pays the higher dividend yield.
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