QQQ vs SMU
Invesco QQQ Trust, Series 1 vs Tradr 2X Long SMR Daily 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 | SMU | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.30% | |
| AUM | $496.3B | $56M | |
| Dividend Yield | 0.44% | 0.00% | |
| Holdings | 108 | 4 | |
| YTD Return | +16.64% | -52.09% | |
| 1Y Return | +27.27% | -93.32% | |
| 3Y Return (annualized) | +25.96% | - | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 176.1% | |
| Max Drawdown | -83.0% | -98.2% | |
| Fund Family | Invesco (US) | Tradr ETFs | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Jul 10, 2025 |
QQQ vs SMU Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Tradr 2X Long SMR Daily ETF (SMU) is a ETF from Tradr ETFs. Over the past year QQQ returned +27.27% while SMU returned -93.32%. Year to date, QQQ is up 16.64% versus a loss of 52.09% for SMU.
Risk: Volatility and Drawdowns
SMU has been the more volatile fund, with annualized monthly volatility of 176.1% 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 -98.2% for SMU. 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 SMU charges 1.30%. On a $10,000 position that is $18 vs $130 annually, a gap of $112 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.00% for SMU.
Holdings Overlap
QQQ and SMU share 0 holdings out of 103 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SMU?
QQQ has an expense ratio of 0.18% while SMU charges 1.30%. QQQ is the cheaper option. On a $10,000 investment, that is $112 per year of difference.
Which performed better, QQQ or SMU?
Over the past year QQQ returned +27.27% vs -93.32% for SMU, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +13.03% vs -93.55% for SMU. Past performance does not guarantee future results.
Which is riskier, QQQ or SMU?
SMU has been the more volatile fund at 176.1% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs SMU -98.2%.
Should I hold both QQQ and SMU?
QQQ and SMU 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 SMU?
QQQ and SMU share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, QQQ or SMU?
QQQ yields 0.44% while SMU yields 0.00%, so QQQ currently pays the higher dividend yield.
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