QQQ vs SOXS
Invesco QQQ Trust, Series 1 vs Direxion Daily Semiconductor Bear 3X 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 | SOXS | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.00% | |
| AUM | $496.3B | $1.5B | |
| Dividend Yield | 0.44% | 7.82% | |
| Holdings | 108 | 12 | |
| YTD Return | +16.64% | -91.29% | |
| 1Y Return | +27.27% | -96.70% | |
| 3Y Return (annualized) | +25.96% | -86.43% | |
| 5Y Return (annualized) | +14.54% | -79.14% | |
| Volatility (annualized) | 30.6% | 72.9% | |
| Max Drawdown | -83.0% | -100.0% | |
| Fund Family | Invesco (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Mar 11, 2010 |
QQQ vs SOXS Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Direxion Daily Semiconductor Bear 3X ETF (SOXS) is a ETF from Direxion Shares ETF Trust. Over the past year QQQ returned +27.27% while SOXS returned -96.70%. Year to date, QQQ is up 16.64% versus a loss of 91.29% for SOXS.
Over three years, QQQ compounded at +25.96% per year against -86.43% for SOXS; over five years the annualized figures are +14.54% and -79.14% respectively. Across the full 16-year window we track, QQQ has the edge at +13.03% annualized vs -70.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SOXS has been the more volatile fund, with annualized monthly volatility of 72.9% 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 SOXS. 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 -0.79. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SOXS charges 1.00%. On a $10,000 position that is $18 vs $100 annually, a gap of $82 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 7.82% for SOXS.
Holdings Overlap
QQQ and SOXS share 0 holdings out of 106 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 SOXS?
QQQ has an expense ratio of 0.18% while SOXS charges 1.00%. QQQ is the cheaper option. On a $10,000 investment, that is $82 per year of difference.
Which performed better, QQQ or SOXS?
Over the past year QQQ returned +27.27% vs -96.70% for SOXS, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), QQQ annualized +13.03% vs -70.91% for SOXS. Past performance does not guarantee future results.
Which is riskier, QQQ or SOXS?
SOXS has been the more volatile fund at 72.9% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs SOXS -100.0%.
Should I hold both QQQ and SOXS?
QQQ and SOXS have a monthly-return correlation of -0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SOXS?
QQQ and SOXS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, QQQ or SOXS?
QQQ yields 0.44% while SOXS yields 7.82%, so SOXS currently pays the higher dividend yield.
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