QQQ vs SMDD
Invesco QQQ Trust, Series 1 vs UltraPro Short MidCap400
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SMDD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.95% | |
| AUM | $496.3B | $2M | |
| Dividend Yield | 0.44% | 5.65% | |
| Holdings | 108 | 6 | |
| YTD Return | +16.23% | -34.46% | |
| 1Y Return | +26.23% | -44.57% | |
| 3Y Return (annualized) | +25.75% | -37.90% | |
| 5Y Return (annualized) | +14.78% | -30.83% | |
| Volatility (annualized) | 30.6% | 52.3% | |
| Max Drawdown | -83.0% | -100.0% | |
| Fund Family | Invesco (US) | ProShares | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Feb 9, 2010 |
QQQ vs SMDD Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and UltraPro Short MidCap400 (SMDD) is a ETF from ProShares. Over the past year QQQ returned +26.23% while SMDD returned -44.57%. Year to date, QQQ is up 16.23% versus a loss of 34.46% for SMDD.
Over three years, QQQ compounded at +25.75% per year against -37.90% for SMDD; over five years the annualized figures are +14.78% and -30.83% respectively. Across the full 17-year window we track, QQQ has the edge at +13.02% annualized vs -40.11%. 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 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 -100.0% for SMDD. 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 -0.70. They move independently enough that combining them can meaningfully diversify a portfolio.
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.
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. On a $10,000 investment, that is $77 per year of difference.
Which performed better, QQQ or SMDD?
Over the past year QQQ returned +26.23% vs -44.57% for SMDD, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +13.02% vs -40.11% for SMDD. Past performance does not guarantee future results.
Which is riskier, QQQ or SMDD?
SMDD has been the more volatile fund at 52.3% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs SMDD -100.0%.
Should I hold both QQQ and SMDD?
QQQ and SMDD have a monthly-return correlation of -0.70, so combining them can provide real diversification depending on your allocation goals.
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.
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