METD vs QQQ

METD vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricMETDQQQWinner
Expense Ratio1.02%0.18%
AUM$10M$496.3B
Dividend Yield2.51%0.44%
Holdings8108
YTD Return+9.92%+16.23%
1Y Return+25.75%+26.23%
3Y Return (annualized)-+25.75%
5Y Return (annualized)-+14.78%
Volatility (annualized)29.6%30.6%
Max Drawdown-46.0%-83.0%
Fund FamilyDirexion Shares ETF TrustInvesco (US)
CategoryAlternativeEquity
InceptionJun 5, 2024Mar 10, 1999

METD vs QQQ Performance

Direxion Daily META Bear 1X ETF (METD) 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 METD returned +25.75% while QQQ returned +26.23%. Year to date, METD is up 9.92% versus a gain of 16.23% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 29.6% for METD. 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 -46.0% for METD 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 -0.54. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

METD charges 1.02% per year while QQQ charges 0.18%. On a $10,000 position that is $102 vs $18 annually, a gap of $84 per year that compounds over a long holding period. On income, METD currently yields 2.51% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

METD and QQQ share 0 holdings out of 106 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, METD or QQQ?

METD has an expense ratio of 1.02% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $84 per year of difference.

Which performed better, METD or QQQ?

Over the past year METD returned +25.75% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), METD annualized -10.84% vs +13.02% for QQQ. Past performance does not guarantee future results.

Which is riskier, METD or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 29.6% for METD. Worst drawdown: METD -46.0% vs QQQ -83.0%.

Should I hold both METD and QQQ?

METD and QQQ have a monthly-return correlation of -0.54, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between METD and QQQ?

METD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.

Which pays a higher dividend, METD or QQQ?

METD yields 2.51% while QQQ yields 0.44%, so METD currently pays the higher dividend yield.

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