MUD vs QQQ
Direxion Daily MU Bear 1X ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | MUD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.18% | |
| AUM | $53M | $455.8B | |
| Dividend Yield | 14.43% | 0.41% | |
| Holdings | 8 | 108 | |
| 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 Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Oct 10, 2024 | Mar 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
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.
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