NVDU vs QQQ
Direxion Daily NVDA Bull 2X 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 108 holdings.
Side-by-Side Comparison
| Metric | NVDU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.92% | 0.18% | |
| AUM | $529M | $455.8B | |
| Dividend Yield | 5.17% | 0.41% | |
| Holdings | 11 | 108 | |
| YTD Return | +22.82% | +19.68% | |
| 1Y Return | +20.25% | +26.75% | |
| 3Y Return (annualized) | +96.33% | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 74.3% | 30.6% | |
| Max Drawdown | -67.3% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 13, 2023 | Mar 10, 1999 |
NVDU vs QQQ Performance
Direxion Daily NVDA Bull 2X ETF (NVDU) 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 NVDU returned +20.25% while QQQ returned +26.75%. Year to date, NVDU is up 22.82% versus a gain of 19.68% for QQQ.
Over three years, NVDU compounded at +96.33% per year against +26.25% for QQQ. Across the full 3-year window we track, NVDU has the edge at +96.33% annualized vs +13.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NVDU has been the more volatile fund, with annualized monthly volatility of 74.3% 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 -67.3% for NVDU 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NVDU charges 0.92% per year while QQQ charges 0.18%. On a $10,000 position that is $92 vs $18 annually, a gap of $74 per year that compounds over a long holding period. On income, NVDU currently yields 5.17% against 0.41% for QQQ.
Holdings Overlap
NVDU and QQQ share 1 holdings out of 107 unique holdings combined, representing a 7.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in NVDU | Weight in QQQ | Difference |
|---|---|---|---|
| NVDA | 11.74% | 7.88% | 3.86% |
Frequently Asked Questions
Which is cheaper, NVDU or QQQ?
NVDU has an expense ratio of 0.92% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $74 per year of difference.
Which performed better, NVDU or QQQ?
Over the past year NVDU returned +20.25% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), NVDU annualized +96.33% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, NVDU or QQQ?
NVDU has been the more volatile fund at 74.3% annualized versus 30.6% for QQQ. Worst drawdown: NVDU -67.3% vs QQQ -83.0%.
Should I hold both NVDU and QQQ?
NVDU and QQQ have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NVDU and QQQ?
NVDU and QQQ share 1 common holdings with a 7.9% weight overlap. Combined, they hold 107 unique securities.
Which pays a higher dividend, NVDU or QQQ?
NVDU yields 5.17% while QQQ yields 0.41%, so NVDU currently pays the higher dividend yield.
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