QQQ vs SMDD

QQQ vs SMDD

Which is better, QQQ or SMDD?

Opposite sides of the same exposure.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.70, so holding both offsets the exposure while paying both fees.

Lower Fees: QQQHigher Returns: QQQ

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricQQQSMDD
Expense Ratio0.18%Best0.95%
AUM$483.5B$2M
Dividend Yield0.44%5.65%
Holdings1075
YTD Return+17.95%Best-24.90%
1Y Return+21.77%Best-27.96%
3Y Return (annualized)+25.63%Best-35.47%
5Y Return (annualized)+15.24%Best-29.38%
Volatility (annualized)17.6%Best52.3%
Max Drawdown-35.1%-
$10,000 over 5 years$20,324Best$1,756
Fund FamilyInvesco (US)ProShares
CategoryEquityAlternative
StyleLarge Cap GrowthTrading-Inverse Equity
InceptionMar 10, 1999Feb 9, 2010

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Feb 11, 2010 to Sep 18, 2026 (16.6 years).

QQQ vs SMDD growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

QQQ vs SMDD Performance

Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and UltraPro Short MidCap400 (SMDD) is an ETF from ProShares. Over the past year QQQ returned +21.77% while SMDD returned -27.96%. Year to date, QQQ is up 17.95% versus a loss of 24.90% for SMDD.

Over three years, QQQ compounded at +25.63% per year against -35.47% for SMDD; over five years the annualized figures are +15.24% and -29.38% respectively. Across the full 17-year window we track, QQQ has the edge at +18.64% annualized vs -39.46%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SMDD has been the more volatile fund, with annualized monthly volatility of 52.3% compared with 17.6% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The two funds' monthly returns correlate at -0.70. They move opposite each other. Holding both offsets the exposure rather than spreading it, while paying both funds' fees.

Fees and Cost Over Time

QQQ charges 0.18% per year while SMDD 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 5.65% for SMDD.

You are not choosing between two funds in isolation.

Whichever of QQQ and SMDD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

QQQSMDD

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Frequently Asked Questions

Which is cheaper, QQQ or SMDD?

QQQ has an expense ratio of 0.18% while SMDD charges 0.95%. QQQ is the cheaper option, by $77 a year on a $10,000 investment.

Which performed better, QQQ or SMDD?

Over the past year QQQ returned +21.77% vs -27.96% for SMDD, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +18.64% vs -39.46% for SMDD. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, QQQ or SMDD?

SMDD has been the more volatile fund at 52.3% annualized versus 17.6% for QQQ.

Should I hold both QQQ and SMDD?

QQQ and SMDD have a monthly-return correlation of -0.70, so they move opposite each other. Holding both offsets the exposure rather than spreading it, and pays both funds' fees on the way. This is information, not a recommendation.

Which pays a higher dividend, QQQ or SMDD?

QQQ yields 0.44% while SMDD yields 5.65%, so SMDD currently pays the higher dividend yield.

Is SMDD better than QQQ?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.70, so holding both offsets the exposure while paying both fees. Which one suits a particular account depends on what it is for. This is information, not a recommendation.