PALU vs QQQ
Direxion Daily PANW Bull 2X ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. PALU delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PALU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.08% | 0.18% | |
| AUM | $38M | $496.3B | |
| Dividend Yield | 4.08% | 0.44% | |
| Holdings | 11 | 108 | |
| YTD Return | +273.54% | +19.52% | |
| 1Y Return | +272.64% | +26.68% | |
| 3Y Return (annualized) | - | +26.64% | |
| 5Y Return (annualized) | - | +15.36% | |
| Volatility (annualized) | 134.1% | 30.6% | |
| Max Drawdown | -62.2% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Mar 26, 2025 | Mar 10, 1999 |
PALU vs QQQ Performance
Direxion Daily PANW Bull 2X ETF (PALU) 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 PALU returned +272.64% while QQQ returned +26.68%. Year to date, PALU is up 273.54% versus a gain of 19.52% for QQQ.
Risk: Volatility and Drawdowns
PALU has been the more volatile fund, with annualized monthly volatility of 134.1% 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 -62.2% for PALU 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PALU charges 1.08% per year while QQQ charges 0.18%. On a $10,000 position that is $108 vs $18 annually, a gap of $90 per year that compounds over a long holding period. On income, PALU currently yields 4.08% against 0.44% for QQQ.
Holdings Overlap
PALU and QQQ share 1 holdings out of 106 unique holdings combined, representing a 1.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PALU | Weight in QQQ | Difference |
|---|---|---|---|
| PANW | 23.80% | 1.30% | 22.50% |
Frequently Asked Questions
Which is cheaper, PALU or QQQ?
PALU has an expense ratio of 1.08% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $90 per year of difference.
Which performed better, PALU or QQQ?
Over the past year PALU returned +272.64% vs +26.68% for QQQ, so PALU leads on 1-year performance. Over the longest common window we track (1 years), PALU annualized +117.45% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, PALU or QQQ?
PALU has been the more volatile fund at 134.1% annualized versus 30.6% for QQQ. Worst drawdown: PALU -62.2% vs QQQ -83.0%.
Should I hold both PALU and QQQ?
PALU and QQQ have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PALU and QQQ?
PALU and QQQ share 1 common holdings with a 1.3% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, PALU or QQQ?
PALU yields 4.08% while QQQ yields 0.44%, so PALU currently pays the higher dividend yield.
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