MZZ vs QQQ
ProShares UltraShort MidCap 400 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 108 holdings.
Side-by-Side Comparison
| Metric | MZZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.18% | |
| AUM | $4M | $496.3B | |
| Dividend Yield | 5.57% | 0.44% | |
| Holdings | 5 | 108 | |
| YTD Return | -22.78% | +16.23% | |
| 1Y Return | -30.03% | +26.23% | |
| 3Y Return (annualized) | -23.05% | +25.75% | |
| 5Y Return (annualized) | -17.31% | +14.78% | |
| Volatility (annualized) | 34.9% | 30.6% | |
| Max Drawdown | -100.0% | -83.0% | |
| Fund Family | ProShares | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Jul 11, 2006 | Mar 10, 1999 |
MZZ vs QQQ Performance
ProShares UltraShort MidCap 400 (MZZ) is a ETF from ProShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MZZ returned -30.03% while QQQ returned +26.23%. Year to date, MZZ is down 22.78% versus a gain of 16.23% for QQQ.
Over three years, MZZ compounded at -23.05% per year against +25.75% for QQQ; over five years the annualized figures are -17.31% and +14.78% respectively. Across the full 20-year window we track, QQQ has the edge at +13.02% annualized vs -30.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MZZ has been the more volatile fund, with annualized monthly volatility of 34.9% 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 -100.0% for MZZ 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 -0.78. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MZZ charges 0.95% per year while QQQ charges 0.18%. On a $10,000 position that is $95 vs $18 annually, a gap of $77 per year that compounds over a long holding period. On income, MZZ currently yields 5.57% against 0.44% for QQQ.
Frequently Asked Questions
Which is cheaper, MZZ or QQQ?
MZZ has an expense ratio of 0.95% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, MZZ or QQQ?
Over the past year MZZ returned -30.03% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), MZZ annualized -30.91% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, MZZ or QQQ?
MZZ has been the more volatile fund at 34.9% annualized versus 30.6% for QQQ. Worst drawdown: MZZ -100.0% vs QQQ -83.0%.
Should I hold both MZZ and QQQ?
MZZ and QQQ have a monthly-return correlation of -0.78, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, MZZ or QQQ?
MZZ yields 5.57% while QQQ yields 0.44%, so MZZ currently pays the higher dividend yield.
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