LABU vs QQQ
Direxion Daily S&P Biotech Bull 3X ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. LABU delivered stronger 1-year returns. LABU offers more diversification with 160 holdings.
Side-by-Side Comparison
| Metric | LABU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.18% | |
| AUM | $533M | $455.8B | |
| Dividend Yield | 0.35% | 0.41% | |
| Holdings | 160 | 108 | |
| YTD Return | +73.91% | +19.68% | |
| 1Y Return | +298.80% | +26.75% | |
| 3Y Return (annualized) | +39.53% | +26.25% | |
| 5Y Return (annualized) | -24.27% | +15.39% | |
| Volatility (annualized) | 85.1% | 30.6% | |
| Max Drawdown | -99.2% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | May 28, 2015 | Mar 10, 1999 |
LABU vs QQQ Performance
Direxion Daily S&P Biotech Bull 3X ETF (LABU) 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 LABU returned +298.80% while QQQ returned +26.75%. Year to date, LABU is up 73.91% versus a gain of 19.68% for QQQ.
Over three years, LABU compounded at +39.53% per year against +26.25% for QQQ; over five years the annualized figures are -24.27% and +15.39% respectively. Across the full 11-year window we track, QQQ has the edge at +13.15% annualized vs -19.33%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LABU has been the more volatile fund, with annualized monthly volatility of 85.1% 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 -99.2% for LABU 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LABU charges 0.96% per year while QQQ charges 0.18%. On a $10,000 position that is $96 vs $18 annually, a gap of $78 per year that compounds over a long holding period. On income, LABU currently yields 0.35% against 0.41% for QQQ.
Holdings Overlap
LABU and QQQ share 5 holdings out of 252 unique holdings combined, representing a 1.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LABU or QQQ?
LABU has an expense ratio of 0.96% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $78 per year of difference.
Which performed better, LABU or QQQ?
Over the past year LABU returned +298.80% vs +26.75% for QQQ, so LABU leads on 1-year performance. Over the longest common window we track (11 years), LABU annualized -19.33% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, LABU or QQQ?
LABU has been the more volatile fund at 85.1% annualized versus 30.6% for QQQ. Worst drawdown: LABU -99.2% vs QQQ -83.0%.
Should I hold both LABU and QQQ?
LABU and QQQ have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LABU and QQQ?
LABU and QQQ share 5 common holdings with a 1.8% weight overlap. Combined, they hold 252 unique securities.
Which pays a higher dividend, LABU or QQQ?
LABU yields 0.35% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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