METU vs QQQ

METU 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

MetricMETUQQQWinner
Expense Ratio1.02%0.18%
AUM$437M$496.3B
Dividend Yield4.61%0.44%
Holdings10108
YTD Return-40.45%+16.64%
1Y Return-57.19%+27.27%
3Y Return (annualized)-+25.96%
5Y Return (annualized)-+14.54%
Volatility (annualized)62.4%30.6%
Max Drawdown-63.9%-83.0%
Fund FamilyDirexion Shares ETF TrustInvesco (US)
CategoryAlternativeEquity
InceptionJun 5, 2024Mar 10, 1999

METU vs QQQ Performance

Direxion Daily META Bull 2X ETF (METU) 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 METU returned -57.19% while QQQ returned +27.27%. Year to date, METU is down 40.45% versus a gain of 16.64% for QQQ.

Risk: Volatility and Drawdowns

METU has been the more volatile fund, with annualized monthly volatility of 62.4% 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 -63.9% for METU 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

METU 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, METU currently yields 4.61% against 0.44% for QQQ.

Holdings Overlap

2.8%overlap

METU and QQQ share 1 holdings out of 106 unique holdings combined, representing a 2.8% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in METUWeight in QQQDifference
META17.67%2.78%14.89%

Frequently Asked Questions

Which is cheaper, METU or QQQ?

METU 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, METU or QQQ?

Over the past year METU returned -57.19% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), METU annualized -13.86% vs +13.03% for QQQ. Past performance does not guarantee future results.

Which is riskier, METU or QQQ?

METU has been the more volatile fund at 62.4% annualized versus 30.6% for QQQ. Worst drawdown: METU -63.9% vs QQQ -83.0%.

Should I hold both METU and QQQ?

METU and QQQ have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between METU and QQQ?

METU and QQQ share 1 common holdings with a 2.8% weight overlap. Combined, they hold 106 unique securities.

Which pays a higher dividend, METU or QQQ?

METU yields 4.61% while QQQ yields 0.44%, so METU currently pays the higher dividend yield.

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