QQQ vs SKYU
Invesco QQQ Trust, Series 1 vs ProShares Ultra Nasdaq Cloud Computing ETF
Quick Verdict
QQQ has a lower expense ratio. SKYU delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SKYU | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.95% | |
| AUM | $496.3B | $7M | |
| Dividend Yield | 0.44% | 0.74% | |
| Holdings | 108 | 68 | |
| YTD Return | +16.64% | +44.08% | |
| 1Y Return | +27.27% | +60.50% | |
| 3Y Return (annualized) | +25.96% | +44.13% | |
| 5Y Return (annualized) | +14.54% | +2.28% | |
| Volatility (annualized) | 30.6% | 52.6% | |
| Max Drawdown | -83.0% | -83.0% | |
| Fund Family | Invesco (US) | ProShares | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Jan 19, 2021 |
QQQ vs SKYU Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares Ultra Nasdaq Cloud Computing ETF (SKYU) is a ETF from ProShares. Over the past year QQQ returned +27.27% while SKYU returned +60.50%. Year to date, QQQ is up 16.64% versus a gain of 44.08% for SKYU.
Over three years, QQQ compounded at +25.96% per year against +44.13% for SKYU; over five years the annualized figures are +14.54% and +2.28% respectively. Across the full 6-year window we track, QQQ has the edge at +13.03% annualized vs +4.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SKYU has been the more volatile fund, with annualized monthly volatility of 52.6% 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 -83.0% for SKYU. 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while SKYU 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 0.74% for SKYU.
Holdings Overlap
QQQ and SKYU share 13 holdings out of 152 unique holdings combined, representing a 12.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SKYU?
QQQ has an expense ratio of 0.18% while SKYU 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 SKYU?
Over the past year QQQ returned +27.27% vs +60.50% for SKYU, so SKYU leads on 1-year performance. Over the longest common window we track (6 years), QQQ annualized +13.03% vs +4.15% for SKYU. Past performance does not guarantee future results.
Which is riskier, QQQ or SKYU?
SKYU has been the more volatile fund at 52.6% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs SKYU -83.0%.
Should I hold both QQQ and SKYU?
QQQ and SKYU have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SKYU?
QQQ and SKYU share 13 common holdings with a 12.5% weight overlap. Combined, they hold 152 unique securities.
Which pays a higher dividend, QQQ or SKYU?
QQQ yields 0.44% while SKYU yields 0.74%, so SKYU currently pays the higher dividend yield.
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