QQQ vs QQQU
Invesco QQQ Trust, Series 1 vs Direxion Daily Magnificent 7 Bull 2X ETF
Which is better, QQQ or QQQU?
Large Cap Growth against Trading-Leveraged Equity.
QQQ has a lower expense ratio. QQQ led over 1Y, QQQU over the full window. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 97.3%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | QQQU |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.98% |
| AUM | $498.6B | $77M |
| Dividend Yield | 0.42% | 9.34% |
| Holdings | 321 | 26 |
| YTD Return | +24.32%Best | +19.02% |
| 1Y Return | +25.59%Best | +20.11% |
| 3Y Return (annualized) | +28.30% | - |
| 5Y Return (annualized) | +16.83% | - |
| Volatility (annualized) | 17.3%Best | 43.8% |
| Max Drawdown | -22.8%Best | -53.7% |
| $10,000 over 2.6 years | $17,366 | $28,385Best |
| Top 10 Weight | 47.2%Best | 97.3% |
| Fund Family | Invesco (US) | Direxion Shares ETF Trust |
| Category | Equity | Alternative |
| Style | Large Cap Growth | Trading-Leveraged Equity |
| Inception | Mar 10, 1999 | Mar 7, 2024 |
Volatility and max drawdown, and the $10,000 over 2.6 years row, are measured over the window both funds cover: Mar 7, 2024 to Oct 6, 2026 (2.6 years).
QQQ vs QQQU growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.6 years both funds cover.
QQQ vs QQQU Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Direxion Daily Magnificent 7 Bull 2X ETF (QQQU) is an ETF from Direxion Shares ETF Trust. Over the past year QQQ returned +25.59% while QQQU returned +20.11%. Year to date, QQQ is up 24.32% versus a gain of 19.02% for QQQU.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQU has been the more volatile fund, with annualized monthly volatility of 43.8% compared with 17.3% 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 -22.8% for QQQ and -53.7% for QQQU. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.84. 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 0.42% against 9.34% for QQQU.
Holdings Overlap
35.7% of QQQ's money is in holdings QQQU also owns. 79.5% of QQQU's money is in holdings QQQ also owns.
Most of QQQU is already inside QQQ. Owning both mostly buys the same companies twice.
7 positions in common, counted across the 102 positions we hold weights for in QQQ and 10 in QQQU, against full books of 321 and 26.
What only one of them owns
Our book lists 3 positions for QQQU that do not appear in our book for QQQ (17.8% of the fund), and 89 for QQQ that do not appear in QQQU (62.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
79.5% of QQQU is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $80 a year on a $10,000 investment.
Which performed better, QQQ or QQQU?
Over the past year QQQ returned +25.59% vs +20.11% for QQQU, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or QQQU?
QQQU has been the more volatile fund at 43.8% annualized versus 17.3% for QQQ. Worst drawdown: QQQ -22.8% vs QQQU -53.7%.
Should I hold both QQQ and QQQU?
QQQ and QQQU have a monthly-return correlation of 0.84, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and QQQU?
79.5% of QQQU's money is in holdings QQQ also owns. 79.5% of QQQU's is in holdings QQQ also owns. They hold 7 positions in common, counted across the 102 positions we hold weights for in QQQ and 10 in QQQU.
Which pays a higher dividend, QQQ or QQQU?
QQQ yields 0.42% while QQQU yields 9.34%, so QQQU currently pays the higher dividend yield.
Is QQQU better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, QQQU over the full window. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 97.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.