QQQ vs SEF
Invesco QQQ Trust, Series 1 vs ProShares Short Financials
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 | SEF | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.95% | |
| AUM | $455.8B | $13M | |
| Dividend Yield | 0.41% | 3.25% | |
| Holdings | 108 | 10 | |
| YTD Return | +18.31% | -3.70% | |
| 1Y Return | +25.37% | -6.64% | |
| 3Y Return (annualized) | +25.79% | -12.94% | |
| 5Y Return (annualized) | +15.20% | -7.31% | |
| Volatility (annualized) | 30.6% | 19.7% | |
| Max Drawdown | -83.0% | -96.7% | |
| Fund Family | Invesco (US) | ProShares | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Jun 10, 2008 |
QQQ vs SEF Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares Short Financials (SEF) is a ETF from ProShares. Over the past year QQQ returned +25.37% while SEF returned -6.64%. Year to date, QQQ is up 18.31% versus a loss of 3.70% for SEF.
Over three years, QQQ compounded at +25.79% per year against -12.94% for SEF; over five years the annualized figures are +15.20% and -7.31% respectively. Across the full 18-year window we track, QQQ has the edge at +13.10% annualized vs -14.48%. 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 19.7% for SEF. 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 -96.7% for SEF. 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 -0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SEF 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 3.25% for SEF.
Holdings Overlap
QQQ and SEF 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 SEF?
QQQ has an expense ratio of 0.18% while SEF 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 SEF?
Over the past year QQQ returned +25.37% vs -6.64% for SEF, so QQQ leads on 1-year performance. Over the longest common window we track (18 years), QQQ annualized +13.10% vs -14.48% for SEF. Past performance does not guarantee future results.
Which is riskier, QQQ or SEF?
QQQ has been the more volatile fund at 30.6% annualized versus 19.7% for SEF. Worst drawdown: QQQ -83.0% vs SEF -96.7%.
Should I hold both QQQ and SEF?
QQQ and SEF have a monthly-return correlation of -0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SEF?
QQQ and SEF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, QQQ or SEF?
QQQ yields 0.41% while SEF yields 3.25%, so SEF currently pays the higher dividend yield.
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