PILL vs QQQ
Direxion Daily Pharmaceutical & Medical Bull 3X ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. PILL delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PILL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.18% | |
| AUM | $22M | $496.3B | |
| Dividend Yield | 0.36% | 0.44% | |
| Holdings | 71 | 108 | |
| YTD Return | +91.21% | +16.23% | |
| 1Y Return | +202.18% | +26.23% | |
| 3Y Return (annualized) | +36.09% | +25.75% | |
| 5Y Return (annualized) | +3.78% | +14.78% | |
| Volatility (annualized) | 60.4% | 30.6% | |
| Max Drawdown | -88.9% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Nov 15, 2017 | Mar 10, 1999 |
PILL vs QQQ Performance
Direxion Daily Pharmaceutical & Medical Bull 3X ETF (PILL) 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 PILL returned +202.18% while QQQ returned +26.23%. Year to date, PILL is up 91.21% versus a gain of 16.23% for QQQ.
Over three years, PILL compounded at +36.09% per year against +25.75% for QQQ; over five years the annualized figures are +3.78% and +14.78% respectively. Across the full 9-year window we track, QQQ has the edge at +13.02% annualized vs +0.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PILL has been the more volatile fund, with annualized monthly volatility of 60.4% 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 -88.9% for PILL 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PILL charges 0.98% per year while QQQ charges 0.18%. On a $10,000 position that is $98 vs $18 annually, a gap of $80 per year that compounds over a long holding period. On income, PILL currently yields 0.36% against 0.44% for QQQ.
Holdings Overlap
PILL and QQQ share 0 holdings out of 170 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, PILL or QQQ?
PILL has an expense ratio of 0.98% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $80 per year of difference.
Which performed better, PILL or QQQ?
Over the past year PILL returned +202.18% vs +26.23% for QQQ, so PILL leads on 1-year performance. Over the longest common window we track (9 years), PILL annualized +0.06% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, PILL or QQQ?
PILL has been the more volatile fund at 60.4% annualized versus 30.6% for QQQ. Worst drawdown: PILL -88.9% vs QQQ -83.0%.
Should I hold both PILL and QQQ?
PILL and QQQ have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PILL and QQQ?
PILL and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 170 unique securities.
Which pays a higher dividend, PILL or QQQ?
PILL yields 0.36% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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