QQQ vs SBB
Invesco QQQ Trust, Series 1 vs ProShares Short SmallCap600
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | SBB | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.95% | |
| AUM | $455.8B | $3M | |
| Dividend Yield | 0.41% | 3.80% | |
| Holdings | 108 | 5 | |
| YTD Return | +17.85% | -16.63% | |
| 1Y Return | +26.45% | -23.55% | |
| 3Y Return (annualized) | +26.07% | -10.68% | |
| 5Y Return (annualized) | +15.16% | -6.26% | |
| Volatility (annualized) | 30.6% | 21.4% | |
| Max Drawdown | -83.0% | -97.4% | |
| Fund Family | Invesco (US) | ProShares | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Jan 23, 2007 |
QQQ vs SBB Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares Short SmallCap600 (SBB) is a ETF from ProShares. Over the past year QQQ returned +26.45% while SBB returned -23.55%. Year to date, QQQ is up 17.85% versus a loss of 16.63% for SBB.
Over three years, QQQ compounded at +26.07% per year against -10.68% for SBB; over five years the annualized figures are +15.16% and -6.26% respectively. Across the full 20-year window we track, QQQ has the edge at +13.09% annualized vs -14.66%. 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 21.4% for SBB. 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 -97.4% for SBB. 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 -0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SBB charges 0.95%. On a $10,000 position that is $18 vs $95 annually, a gap of $77 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 3.80% for SBB.
Frequently Asked Questions
Which is cheaper, QQQ or SBB?
QQQ has an expense ratio of 0.18% while SBB charges 0.95%. QQQ is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, QQQ or SBB?
Over the past year QQQ returned +26.45% vs -23.55% for SBB, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.09% vs -14.66% for SBB. Past performance does not guarantee future results.
Which is riskier, QQQ or SBB?
QQQ has been the more volatile fund at 30.6% annualized versus 21.4% for SBB. Worst drawdown: QQQ -83.0% vs SBB -97.4%.
Should I hold both QQQ and SBB?
QQQ and SBB have a monthly-return correlation of -0.69, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, QQQ or SBB?
QQQ yields 0.41% while SBB yields 3.80%, so SBB currently pays the higher dividend yield.
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