QQQ vs SDD
Invesco QQQ Trust, Series 1 vs ProShares UltraShort SmallCap600
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 | SDD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.95% | |
| AUM | $496.3B | $1M | |
| Dividend Yield | 0.44% | 6.30% | |
| Holdings | 108 | 4 | |
| YTD Return | +17.07% | -32.57% | |
| 1Y Return | +26.39% | -40.56% | |
| 3Y Return (annualized) | +26.08% | -27.01% | |
| 5Y Return (annualized) | +15.18% | -19.00% | |
| Volatility (annualized) | 30.6% | 38.8% | |
| Max Drawdown | -83.0% | -100.0% | |
| Fund Family | Invesco (US) | ProShares | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Jan 23, 2007 |
QQQ vs SDD Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares UltraShort SmallCap600 (SDD) is a ETF from ProShares. Over the past year QQQ returned +26.39% while SDD returned -40.56%. Year to date, QQQ is up 17.07% versus a loss of 32.57% for SDD.
Over three years, QQQ compounded at +26.08% per year against -27.01% for SDD; over five years the annualized figures are +15.18% and -19.00% respectively. Across the full 20-year window we track, QQQ has the edge at +13.05% annualized vs -29.66%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SDD has been the more volatile fund, with annualized monthly volatility of 38.8% 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 -100.0% for SDD. 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 -0.73. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SDD 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 0.44% against 6.30% for SDD.
Frequently Asked Questions
Which is cheaper, QQQ or SDD?
QQQ has an expense ratio of 0.18% while SDD 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 SDD?
Over the past year QQQ returned +26.39% vs -40.56% for SDD, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.05% vs -29.66% for SDD. Past performance does not guarantee future results.
Which is riskier, QQQ or SDD?
SDD has been the more volatile fund at 38.8% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs SDD -100.0%.
Should I hold both QQQ and SDD?
QQQ and SDD have a monthly-return correlation of -0.73, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, QQQ or SDD?
QQQ yields 0.44% while SDD yields 6.30%, so SDD currently pays the higher dividend yield.
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