QQQ vs SQQQ
Invesco QQQ Trust, Series 1 vs ProShares UltraPro Short QQQ
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 | SQQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.95% | |
| AUM | $496.3B | $1.8B | |
| Dividend Yield | 0.44% | 9.13% | |
| Holdings | 108 | 20 | |
| YTD Return | +16.64% | -42.05% | |
| 1Y Return | +27.27% | -55.32% | |
| 3Y Return (annualized) | +25.96% | -54.21% | |
| 5Y Return (annualized) | +14.54% | -44.93% | |
| Volatility (annualized) | 30.6% | 48.4% | |
| Max Drawdown | -83.0% | -100.0% | |
| Fund Family | Invesco (US) | ProShares | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Feb 9, 2010 |
QQQ vs SQQQ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares UltraPro Short QQQ (SQQQ) is a ETF from ProShares. Over the past year QQQ returned +27.27% while SQQQ returned -55.32%. Year to date, QQQ is up 16.64% versus a loss of 42.05% for SQQQ.
Over three years, QQQ compounded at +25.96% per year against -54.21% for SQQQ; over five years the annualized figures are +14.54% and -44.93% respectively. Across the full 17-year window we track, QQQ has the edge at +13.03% annualized vs -52.76%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SQQQ has been the more volatile fund, with annualized monthly volatility of 48.4% 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 SQQQ. 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 -0.97. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SQQQ charges 0.95%. On a $10,000 position that is $18 vs $95 annually, a gap of $77 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 9.13% for SQQQ.
Holdings Overlap
QQQ and SQQQ 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 SQQQ?
QQQ has an expense ratio of 0.18% while SQQQ charges 0.95%. QQQ is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, QQQ or SQQQ?
Over the past year QQQ returned +27.27% vs -55.32% for SQQQ, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +13.03% vs -52.76% for SQQQ. Past performance does not guarantee future results.
Which is riskier, QQQ or SQQQ?
SQQQ has been the more volatile fund at 48.4% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs SQQQ -100.0%.
Should I hold both QQQ and SQQQ?
QQQ and SQQQ have a monthly-return correlation of -0.97, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SQQQ?
QQQ and SQQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, QQQ or SQQQ?
QQQ yields 0.44% while SQQQ yields 9.13%, so SQQQ currently pays the higher dividend yield.
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