QQQ vs SH
Invesco QQQ Trust, Series 1 vs ProShares Short 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 | SH | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.89% | |
| AUM | $455.8B | $928M | |
| Dividend Yield | 0.41% | 4.21% | |
| Holdings | 108 | 16 | |
| YTD Return | +19.68% | -10.10% | |
| 1Y Return | +26.75% | -13.55% | |
| 3Y Return (annualized) | +26.25% | -13.24% | |
| 5Y Return (annualized) | +15.39% | -8.86% | |
| Volatility (annualized) | 30.6% | 14.9% | |
| Max Drawdown | -83.0% | -95.5% | |
| Fund Family | Invesco (US) | ProShares | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Jun 19, 2006 |
QQQ vs SH Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares Short S&P500 (SH) is a ETF from ProShares. Over the past year QQQ returned +26.75% while SH returned -13.55%. Year to date, QQQ is up 19.68% versus a loss of 10.10% for SH.
Over three years, QQQ compounded at +26.25% per year against -13.24% for SH; over five years the annualized figures are +15.39% and -8.86% respectively. Across the full 20-year window we track, QQQ has the edge at +13.15% annualized vs -12.55%. 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 14.9% for SH. 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 -95.5% for SH. 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 -0.88. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SH charges 0.89%. On a $10,000 position that is $18 vs $89 annually, a gap of $71 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.21% for SH.
Frequently Asked Questions
Which is cheaper, QQQ or SH?
QQQ has an expense ratio of 0.18% while SH charges 0.89%. QQQ is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, QQQ or SH?
Over the past year QQQ returned +26.75% vs -13.55% for SH, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.15% vs -12.55% for SH. Past performance does not guarantee future results.
Which is riskier, QQQ or SH?
QQQ has been the more volatile fund at 30.6% annualized versus 14.9% for SH. Worst drawdown: QQQ -83.0% vs SH -95.5%.
Should I hold both QQQ and SH?
QQQ and SH have a monthly-return correlation of -0.88, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, QQQ or SH?
QQQ yields 0.41% while SH yields 4.21%, so SH currently pays the higher dividend yield.
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