QQQ vs QQQE
Invesco QQQ Trust, Series 1 vs Direxion NASDAQ-100 Equal Weighted Index 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 | QQQE | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $1.5B | |
| Dividend Yield | 0.44% | 0.58% | |
| Holdings | 108 | 103 | |
| YTD Return | +16.64% | +20.30% | |
| 1Y Return | +27.27% | +27.07% | |
| 3Y Return (annualized) | +25.96% | +18.26% | |
| 5Y Return (annualized) | +14.54% | +8.92% | |
| Volatility (annualized) | 30.6% | 16.2% | |
| Max Drawdown | -83.0% | -32.1% | |
| Fund Family | Invesco (US) | Direxion Shares ETF Trust | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Mar 21, 2012 |
QQQ vs QQQE Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Direxion NASDAQ-100 Equal Weighted Index ETF (QQQE) is a ETF from Direxion Shares ETF Trust. Over the past year QQQ returned +27.27% while QQQE returned +27.07%. Year to date, QQQ is up 16.64% versus a gain of 20.30% for QQQE.
Over three years, QQQ compounded at +25.96% per year against +18.26% for QQQE; over five years the annualized figures are +14.54% and +8.92% respectively. Across the full 14-year window we track, QQQE has the edge at +13.98% annualized vs +13.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 16.2% for QQQE. 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 -32.1% for QQQE. 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while QQQE charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.58% for QQQE.
Holdings Overlap
QQQ and QQQE share 99 holdings out of 106 unique holdings combined, representing a 51.9% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, QQQ or QQQE?
QQQ has an expense ratio of 0.18% while QQQE charges 0.35%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, QQQ or QQQE?
Over the past year QQQ returned +27.27% vs +27.07% for QQQE, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), QQQ annualized +13.03% vs +13.98% for QQQE. Past performance does not guarantee future results.
Which is riskier, QQQ or QQQE?
QQQ has been the more volatile fund at 30.6% annualized versus 16.2% for QQQE. Worst drawdown: QQQ -83.0% vs QQQE -32.1%.
Should I hold both QQQ and QQQE?
QQQ and QQQE have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QQQ and QQQE?
QQQ and QQQE share 99 common holdings with a 51.9% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, QQQ or QQQE?
QQQ yields 0.44% while QQQE yields 0.58%, so QQQE currently pays the higher dividend yield.
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