FNGG vs QQQ
Direxion Daily NYSE FANG+ Bull 2X ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FNGG delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | FNGG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.97% | 0.18% | |
| AUM | $143M | $496.3B | |
| Dividend Yield | 10.70% | 0.44% | |
| Holdings | 18 | 108 | |
| YTD Return | +29.44% | +16.64% | |
| 1Y Return | +35.54% | +27.27% | |
| 3Y Return (annualized) | +60.38% | +25.96% | |
| 5Y Return (annualized) | +3.76% | +14.54% | |
| Volatility (annualized) | 58.4% | 30.6% | |
| Max Drawdown | -91.3% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 29, 2021 | Mar 10, 1999 |
FNGG vs QQQ Performance
Direxion Daily NYSE FANG+ Bull 2X ETF (FNGG) 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 FNGG returned +35.54% while QQQ returned +27.27%. Year to date, FNGG is up 29.44% versus a gain of 16.64% for QQQ.
Over three years, FNGG compounded at +60.38% per year against +25.96% for QQQ; over five years the annualized figures are +3.76% and +14.54% respectively. Across the full 5-year window we track, QQQ has the edge at +13.03% annualized vs +3.76%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FNGG has been the more volatile fund, with annualized monthly volatility of 58.4% 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 -91.3% for FNGG 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FNGG charges 0.97% per year while QQQ charges 0.18%. On a $10,000 position that is $97 vs $18 annually, a gap of $79 per year that compounds over a long holding period. On income, FNGG currently yields 10.70% against 0.44% for QQQ.
Holdings Overlap
FNGG and QQQ share 10 holdings out of 105 unique holdings combined, representing a 32.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FNGG or QQQ?
FNGG has an expense ratio of 0.97% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $79 per year of difference.
Which performed better, FNGG or QQQ?
Over the past year FNGG returned +35.54% vs +27.27% for QQQ, so FNGG leads on 1-year performance. Over the longest common window we track (5 years), FNGG annualized +3.76% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, FNGG or QQQ?
FNGG has been the more volatile fund at 58.4% annualized versus 30.6% for QQQ. Worst drawdown: FNGG -91.3% vs QQQ -83.0%.
Should I hold both FNGG and QQQ?
FNGG and QQQ have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FNGG and QQQ?
FNGG and QQQ share 10 common holdings with a 32.9% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, FNGG or QQQ?
FNGG yields 10.70% while QQQ yields 0.44%, so FNGG currently pays the higher dividend yield.
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