QQQ vs QQQD
Invesco QQQ Trust, Series 1 vs Direxion Daily Magnificent 7 Bear 1X ETF
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 | QQQ | QQQD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.50% | |
| AUM | $496.3B | $32M | |
| Dividend Yield | 0.44% | 3.06% | |
| Holdings | 108 | 7 | |
| YTD Return | +16.64% | -2.35% | |
| 1Y Return | +27.27% | -13.36% | |
| 3Y Return (annualized) | +25.96% | - | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 21.5% | |
| Max Drawdown | -83.0% | -49.9% | |
| Fund Family | Invesco (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Mar 7, 2024 |
QQQ vs QQQD Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Direxion Daily Magnificent 7 Bear 1X ETF (QQQD) is a ETF from Direxion Shares ETF Trust. Over the past year QQQ returned +27.27% while QQQD returned -13.36%. Year to date, QQQ is up 16.64% versus a loss of 2.35% for QQQD.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 21.5% for QQQD. 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 -83.0% for QQQ and -49.9% for QQQD. 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 -0.80. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while QQQD charges 0.50%. On a $10,000 position that is $18 vs $50 annually, a gap of $32 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.06% for QQQD.
Holdings Overlap
QQQ and QQQD 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, QQQ or QQQD?
QQQ has an expense ratio of 0.18% while QQQD charges 0.50%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, QQQ or QQQD?
Over the past year QQQ returned +27.27% vs -13.36% for QQQD, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.03% vs -20.86% for QQQD. Past performance does not guarantee future results.
Which is riskier, QQQ or QQQD?
QQQ has been the more volatile fund at 30.6% annualized versus 21.5% for QQQD. Worst drawdown: QQQ -83.0% vs QQQD -49.9%.
Should I hold both QQQ and QQQD?
QQQ and QQQD have a monthly-return correlation of -0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and QQQD?
QQQ and QQQD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, QQQ or QQQD?
QQQ yields 0.44% while QQQD yields 3.06%, so QQQD currently pays the higher dividend yield.
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