QQQ vs SMST
Invesco QQQ Trust, Series 1 vs Defiance Daily Target 2X Short MSTR ETF
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 | SMST | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.31% | |
| AUM | $496.3B | $28M | |
| Dividend Yield | 0.44% | 0.00% | |
| Holdings | 108 | 8 | |
| YTD Return | +16.64% | -62.68% | |
| 1Y Return | +27.27% | +10.73% | |
| 3Y Return (annualized) | +25.96% | - | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 183.3% | |
| Max Drawdown | -83.0% | -99.3% | |
| Fund Family | Invesco (US) | Defiance ETFs, LLC | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Aug 20, 2024 |
QQQ vs SMST Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Defiance Daily Target 2X Short MSTR ETF (SMST) is a ETF from Defiance ETFs, LLC. Over the past year QQQ returned +27.27% while SMST returned +10.73%. Year to date, QQQ is up 16.64% versus a loss of 62.68% for SMST.
Risk: Volatility and Drawdowns
SMST has been the more volatile fund, with annualized monthly volatility of 183.3% 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 -99.3% for SMST. 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 -0.19. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SMST charges 1.31%. On a $10,000 position that is $18 vs $131 annually, a gap of $113 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.00% for SMST.
Holdings Overlap
QQQ and SMST share 1 holdings out of 103 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in SMST | Difference |
|---|---|---|---|
| MSTR | 0.14% | -43.82% | 43.96% |
Frequently Asked Questions
Which is cheaper, QQQ or SMST?
QQQ has an expense ratio of 0.18% while SMST charges 1.31%. QQQ is the cheaper option. On a $10,000 investment, that is $113 per year of difference.
Which performed better, QQQ or SMST?
Over the past year QQQ returned +27.27% vs +10.73% for SMST, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.03% vs -86.76% for SMST. Past performance does not guarantee future results.
Which is riskier, QQQ or SMST?
SMST has been the more volatile fund at 183.3% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs SMST -99.3%.
Should I hold both QQQ and SMST?
QQQ and SMST have a monthly-return correlation of -0.19, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SMST?
QQQ and SMST share 1 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, QQQ or SMST?
QQQ yields 0.44% while SMST yields 0.00%, so QQQ currently pays the higher dividend yield.
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