QQQ vs SDS
Invesco QQQ Trust, Series 1 vs ProShares UltraShort S&P500
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 | SDS | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.91% | |
| AUM | $455.8B | $428M | |
| Dividend Yield | 0.41% | 5.33% | |
| Holdings | 108 | 20 | |
| YTD Return | +18.31% | -20.44% | |
| 1Y Return | +25.37% | -28.18% | |
| 3Y Return (annualized) | +25.79% | -28.58% | |
| 5Y Return (annualized) | +15.20% | -21.19% | |
| Volatility (annualized) | 30.6% | 28.3% | |
| Max Drawdown | -83.0% | -99.9% | |
| Fund Family | Invesco (US) | ProShares | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Jul 11, 2006 |
QQQ vs SDS Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares UltraShort S&P500 (SDS) is a ETF from ProShares. Over the past year QQQ returned +25.37% while SDS returned -28.18%. Year to date, QQQ is up 18.31% versus a loss of 20.44% for SDS.
Over three years, QQQ compounded at +25.79% per year against -28.58% for SDS; over five years the annualized figures are +15.20% and -21.19% respectively. Across the full 20-year window we track, QQQ has the edge at +13.10% annualized vs -26.34%. 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 28.3% for SDS. 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 SDS. 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 -0.89. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SDS charges 0.91%. On a $10,000 position that is $18 vs $91 annually, a gap of $73 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 5.33% for SDS.
Holdings Overlap
QQQ and SDS share 0 holdings out of 104 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SDS?
QQQ has an expense ratio of 0.18% while SDS charges 0.91%. QQQ is the cheaper option. On a $10,000 investment, that is $73 per year of difference.
Which performed better, QQQ or SDS?
Over the past year QQQ returned +25.37% vs -28.18% for SDS, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.10% vs -26.34% for SDS. Past performance does not guarantee future results.
Which is riskier, QQQ or SDS?
QQQ has been the more volatile fund at 30.6% annualized versus 28.3% for SDS. Worst drawdown: QQQ -83.0% vs SDS -99.9%.
Should I hold both QQQ and SDS?
QQQ and SDS have a monthly-return correlation of -0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SDS?
QQQ and SDS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, QQQ or SDS?
QQQ yields 0.41% while SDS yields 5.33%, so SDS currently pays the higher dividend yield.
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