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

MetricQQQSDPWinner
Expense Ratio0.18%0.95%
AUM$455.8B$4M
Dividend Yield0.41%4.27%
Holdings1085
YTD Return+18.20%-3.70%
1Y Return+27.63%-3.28%
3Y Return (annualized)+25.54%-20.46%
5Y Return (annualized)+15.12%-15.33%
Volatility (annualized)30.6%30.4%
Max Drawdown-83.0%-99.8%
Fund FamilyInvesco (US)ProShares
CategoryEquityAlternative
InceptionMar 10, 1999Jan 30, 2007

QQQ vs SDP Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares UltraShort Utilities (SDP) is a ETF from ProShares. Over the past year QQQ returned +27.63% while SDP returned -3.28%. Year to date, QQQ is up 18.20% versus a loss of 3.70% for SDP.

Over three years, QQQ compounded at +25.54% per year against -20.46% for SDP; over five years the annualized figures are +15.12% and -15.33% respectively. Across the full 20-year window we track, QQQ has the edge at +13.11% annualized vs -24.75%. 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 30.4% for SDP. 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 -99.8% for SDP. 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 -0.36. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while SDP 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 4.27% for SDP.

Frequently Asked Questions

Which is cheaper, QQQ or SDP?

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

Over the past year QQQ returned +27.63% vs -3.28% for SDP, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.11% vs -24.75% for SDP. Past performance does not guarantee future results.

Which is riskier, QQQ or SDP?

QQQ has been the more volatile fund at 30.6% annualized versus 30.4% for SDP. Worst drawdown: QQQ -83.0% vs SDP -99.8%.

Should I hold both QQQ and SDP?

QQQ and SDP have a monthly-return correlation of -0.36, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, QQQ or SDP?

QQQ yields 0.41% while SDP yields 4.27%, so SDP currently pays the higher dividend yield.

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