QQQ vs SCC

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQSCCWinner
Expense Ratio0.18%0.95%
AUM$455.8B$7M
Dividend Yield0.41%3.53%
Holdings1085
YTD Return+17.46%-3.79%
1Y Return+26.02%-13.71%
3Y Return (annualized)+25.51%-23.57%
5Y Return (annualized)+15.12%-15.81%
Volatility (annualized)30.6%34.1%
Max Drawdown-83.0%-99.9%
Fund FamilyInvesco (US)ProShares
CategoryEquityAlternative
InceptionMar 10, 1999Jan 30, 2007

QQQ vs SCC Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares UltraShort Consumer Discretionary (SCC) is a ETF from ProShares. Over the past year QQQ returned +26.02% while SCC returned -13.71%. Year to date, QQQ is up 17.46% versus a loss of 3.79% for SCC.

Over three years, QQQ compounded at +25.51% per year against -23.57% for SCC; over five years the annualized figures are +15.12% and -15.81% respectively. Across the full 20-year window we track, QQQ has the edge at +13.08% annualized vs -27.63%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCC has been the more volatile fund, with annualized monthly volatility of 34.1% 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 -99.9% for SCC. 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 move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while SCC 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 3.53% for SCC.

Frequently Asked Questions

Which is cheaper, QQQ or SCC?

QQQ has an expense ratio of 0.18% while SCC 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 SCC?

Over the past year QQQ returned +26.02% vs -13.71% for SCC, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.08% vs -27.63% for SCC. Past performance does not guarantee future results.

Which is riskier, QQQ or SCC?

SCC has been the more volatile fund at 34.1% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs SCC -99.9%.

Should I hold both QQQ and SCC?

QQQ and SCC have a monthly-return correlation of -0.83, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, QQQ or SCC?

QQQ yields 0.41% while SCC yields 3.53%, so SCC currently pays the higher dividend yield.

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