PALD vs QQQ
Direxion Daily PANW 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 108 holdings.
Side-by-Side Comparison
| Metric | PALD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.18% | |
| AUM | $3M | $496.3B | |
| Dividend Yield | 5.19% | 0.44% | |
| Holdings | 8 | 108 | |
| YTD Return | -55.16% | +16.64% | |
| 1Y Return | -54.26% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 47.1% | 30.6% | |
| Max Drawdown | -67.4% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Mar 26, 2025 | Mar 10, 1999 |
PALD vs QQQ Performance
Direxion Daily PANW Bear 1X ETF (PALD) 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 PALD returned -54.26% while QQQ returned +27.27%. Year to date, PALD is down 55.16% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
PALD has been the more volatile fund, with annualized monthly volatility of 47.1% 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 -67.4% for PALD 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 -0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PALD 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, PALD currently yields 5.19% against 0.44% for QQQ.
Holdings Overlap
PALD and QQQ share 0 holdings out of 106 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, PALD or QQQ?
PALD 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, PALD or QQQ?
Over the past year PALD returned -54.26% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), PALD annualized -43.70% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, PALD or QQQ?
PALD has been the more volatile fund at 47.1% annualized versus 30.6% for QQQ. Worst drawdown: PALD -67.4% vs QQQ -83.0%.
Should I hold both PALD and QQQ?
PALD and QQQ have a monthly-return correlation of -0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PALD and QQQ?
PALD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, PALD or QQQ?
PALD yields 5.19% while QQQ yields 0.44%, so PALD currently pays the higher dividend yield.
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