QQQ vs SOFX

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQSOFXWinner
Expense Ratio0.18%1.29%
AUM$455.8B$75M
Dividend Yield0.41%0.00%
Holdings10811
YTD Return+18.31%-69.25%
1Y Return+25.37%-67.29%
3Y Return (annualized)+25.79%-
5Y Return (annualized)+15.20%-
Volatility (annualized)30.6%106.2%
Max Drawdown-83.0%-84.8%
Fund FamilyInvesco (US)Defiance ETFs, LLC
CategoryEquityAlternative
InceptionMar 10, 1999Jan 15, 2025

QQQ vs SOFX Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Defiance Daily Target 2X Long SOFI ETF (SOFX) is a ETF from Defiance ETFs, LLC. Over the past year QQQ returned +25.37% while SOFX returned -67.29%. Year to date, QQQ is up 18.31% versus a loss of 69.25% for SOFX.

Risk: Volatility and Drawdowns

SOFX has been the more volatile fund, with annualized monthly volatility of 106.2% 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 -84.8% for SOFX. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while SOFX charges 1.29%. On a $10,000 position that is $18 vs $129 annually, a gap of $111 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.00% for SOFX.

Holdings Overlap

0.0%overlap

QQQ and SOFX share 0 holdings out of 105 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 SOFX?

QQQ has an expense ratio of 0.18% while SOFX charges 1.29%. QQQ is the cheaper option. On a $10,000 investment, that is $111 per year of difference.

Which performed better, QQQ or SOFX?

Over the past year QQQ returned +25.37% vs -67.29% for SOFX, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.10% vs -36.74% for SOFX. Past performance does not guarantee future results.

Which is riskier, QQQ or SOFX?

SOFX has been the more volatile fund at 106.2% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs SOFX -84.8%.

Should I hold both QQQ and SOFX?

QQQ and SOFX have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and SOFX?

QQQ and SOFX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.

Which pays a higher dividend, QQQ or SOFX?

QQQ yields 0.41% while SOFX yields 0.00%, so QQQ currently pays the higher dividend yield.

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