QQQ vs SOXL
Invesco QQQ Trust, Series 1 vs Direxion Daily Semiconductor Bull 3X ETF
Quick Verdict
QQQ has a lower expense ratio. SOXL delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SOXL | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.75% | |
| AUM | $496.3B | $24.3B | |
| Dividend Yield | 0.44% | 0.01% | |
| Holdings | 108 | 43 | |
| YTD Return | +16.64% | +155.29% | |
| 1Y Return | +27.27% | +375.74% | |
| 3Y Return (annualized) | +25.96% | +78.72% | |
| 5Y Return (annualized) | +14.54% | +23.06% | |
| Volatility (annualized) | 30.6% | 87.7% | |
| Max Drawdown | -83.0% | -90.5% | |
| Fund Family | Invesco (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Mar 11, 2010 |
QQQ vs SOXL Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Direxion Daily Semiconductor Bull 3X ETF (SOXL) is a ETF from Direxion Shares ETF Trust. Over the past year QQQ returned +27.27% while SOXL returned +375.74%. Year to date, QQQ is up 16.64% versus a gain of 155.29% for SOXL.
Over three years, QQQ compounded at +25.96% per year against +78.72% for SOXL; over five years the annualized figures are +14.54% and +23.06% respectively. Across the full 16-year window we track, SOXL has the edge at +37.43% annualized vs +13.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SOXL has been the more volatile fund, with annualized monthly volatility of 87.7% 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 -90.5% for SOXL. 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while SOXL charges 0.75%. On a $10,000 position that is $18 vs $75 annually, a gap of $57 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.01% for SOXL.
Holdings Overlap
QQQ and SOXL share 18 holdings out of 119 unique holdings combined, representing a 28.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SOXL?
QQQ has an expense ratio of 0.18% while SOXL charges 0.75%. QQQ is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, QQQ or SOXL?
Over the past year QQQ returned +27.27% vs +375.74% for SOXL, so SOXL leads on 1-year performance. Over the longest common window we track (16 years), QQQ annualized +13.03% vs +37.43% for SOXL. Past performance does not guarantee future results.
Which is riskier, QQQ or SOXL?
SOXL has been the more volatile fund at 87.7% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs SOXL -90.5%.
Should I hold both QQQ and SOXL?
QQQ and SOXL have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SOXL?
QQQ and SOXL share 18 common holdings with a 28.0% weight overlap. Combined, they hold 119 unique securities.
Which pays a higher dividend, QQQ or SOXL?
QQQ yields 0.44% while SOXL yields 0.01%, so QQQ currently pays the higher dividend yield.
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