MUD vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricMUDQQQWinner
Expense Ratio1.02%0.18%
AUM$53M$455.8B
Dividend Yield14.43%0.41%
Holdings8108
YTD Return-77.74%+18.20%
1Y Return-93.09%+27.63%
3Y Return (annualized)-+25.54%
5Y Return (annualized)-+15.12%
Volatility (annualized)67.7%30.6%
Max Drawdown-97.0%-83.0%
Fund FamilyDirexion Shares ETF TrustInvesco (US)
CategoryAlternativeEquity
InceptionOct 10, 2024Mar 10, 1999

MUD vs QQQ Performance

Direxion Daily MU Bear 1X ETF (MUD) 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 MUD returned -93.09% while QQQ returned +27.63%. Year to date, MUD is down 77.74% versus a gain of 18.20% for QQQ.

Risk: Volatility and Drawdowns

MUD has been the more volatile fund, with annualized monthly volatility of 67.7% 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 -97.0% for MUD 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 -0.69. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MUD 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, MUD currently yields 14.43% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

MUD and QQQ share 0 holdings out of 107 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, MUD or QQQ?

MUD 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, MUD or QQQ?

Over the past year MUD returned -93.09% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), MUD annualized -80.47% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, MUD or QQQ?

MUD has been the more volatile fund at 67.7% annualized versus 30.6% for QQQ. Worst drawdown: MUD -97.0% vs QQQ -83.0%.

Should I hold both MUD and QQQ?

MUD and QQQ have a monthly-return correlation of -0.69, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MUD and QQQ?

MUD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 107 unique securities.

Which pays a higher dividend, MUD or QQQ?

MUD yields 14.43% while QQQ yields 0.41%, so MUD currently pays the higher dividend yield.

Get Full ETF Analytics

Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.