QQQ vs QQQU
Invesco QQQ Trust, Series 1 vs Direxion Daily Magnificent 7 Bull 2X 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 | QQQU | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.98% | |
| AUM | $496.3B | $76M | |
| Dividend Yield | 0.44% | 10.09% | |
| Holdings | 108 | 14 | |
| YTD Return | +16.64% | -0.18% | |
| 1Y Return | +27.27% | +26.05% | |
| 3Y Return (annualized) | +25.96% | - | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 45.1% | |
| Max Drawdown | -83.0% | -53.7% | |
| Fund Family | Invesco (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Mar 7, 2024 |
QQQ vs QQQU Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Direxion Daily Magnificent 7 Bull 2X ETF (QQQU) is a ETF from Direxion Shares ETF Trust. Over the past year QQQ returned +27.27% while QQQU returned +26.05%. Year to date, QQQ is up 16.64% versus a loss of 0.18% for QQQU.
Risk: Volatility and Drawdowns
QQQU has been the more volatile fund, with annualized monthly volatility of 45.1% 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 -83.0% for QQQ and -53.7% for QQQU. 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while QQQU charges 0.98%. On a $10,000 position that is $18 vs $98 annually, a gap of $80 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 10.09% for QQQU.
Holdings Overlap
QQQ and QQQU share 7 holdings out of 106 unique holdings combined, representing a 34.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or QQQU?
QQQ has an expense ratio of 0.18% while QQQU charges 0.98%. QQQ is the cheaper option. On a $10,000 investment, that is $80 per year of difference.
Which performed better, QQQ or QQQU?
Over the past year QQQ returned +27.27% vs +26.05% for QQQU, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.03% vs +41.94% for QQQU. Past performance does not guarantee future results.
Which is riskier, QQQ or QQQU?
QQQU has been the more volatile fund at 45.1% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs QQQU -53.7%.
Should I hold both QQQ and QQQU?
QQQ and QQQU have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and QQQU?
QQQ and QQQU share 7 common holdings with a 34.8% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, QQQ or QQQU?
QQQ yields 0.44% while QQQU yields 10.09%, so QQQU currently pays the higher dividend yield.
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