QQQ vs STSM
Invesco QQQ Trust, Series 1 vs Defiance Daily Target 2X Short TSM ETF
Which is better, QQQ or STSM?
Opposite sides of the same exposure.
QQQ has a lower expense ratio. QQQ led over 1Y. The two move opposite each other, correlation -0.66, so holding both offsets the exposure while paying both fees.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | STSM |
|---|---|---|
| Expense Ratio | 0.18%Best | 1.30% |
| AUM | $437.3B | $2M |
| Dividend Yield | 0.43% | 0.00% |
| Holdings | 208 | 12 |
| YTD Return | +12.98%Best | -63.67% |
| 1Y Return | +11.59%Best | -73.49% |
| 3Y Return (annualized) | +23.05% | - |
| 5Y Return (annualized) | +12.74% | - |
| Volatility (annualized) | 23.1%Best | 68.4% |
| Fund Family | Invesco (US) | Defiance ETFs, LLC |
| Category | Equity | Alternative |
| Style | Large Cap Growth | Trading-Inverse Equity |
| Inception | Mar 10, 1999 | Nov 17, 2025 |
Not shown on this pair: Max Drawdown, $10,000 over the window, Top 10 Weight.
QQQ vs STSM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
QQQ vs STSM Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Defiance Daily Target 2X Short TSM ETF (STSM) is an ETF from Defiance ETFs, LLC. Over the past year QQQ returned +11.59% while STSM returned -73.49%. Year to date, QQQ is up 12.98% versus a loss of 63.67% for STSM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
STSM has been the more volatile fund, with annualized monthly volatility of 68.4% compared with 23.1% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The two funds' monthly returns correlate at -0.66. They move opposite each other. Holding both offsets the exposure rather than spreading it, while paying both funds' fees.
Fees and Cost Over Time
QQQ charges 0.18% per year while STSM 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 0.43% against 0.00% for STSM.
Holdings Overlap
We hold position weights for 101 holdings in QQQ and 1 in STSM, totalling 99.7% and 8.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 101 positions we hold weights for in QQQ and 1 in STSM, against full books of 208 and 12.
You are not choosing between two funds in isolation.
Whichever of QQQ and STSM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or STSM?
QQQ has an expense ratio of 0.18% while STSM charges 1.30%. QQQ is the cheaper option, by $112 a year on a $10,000 investment.
Which performed better, QQQ or STSM?
Over the past year QQQ returned +11.59% vs -73.49% for STSM, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or STSM?
STSM has been the more volatile fund at 68.4% annualized versus 23.1% for QQQ.
Should I hold both QQQ and STSM?
QQQ and STSM have a monthly-return correlation of -0.66, so they move opposite each other. Holding both offsets the exposure rather than spreading it, and pays both funds' fees on the way. This is information, not a recommendation.
Which pays a higher dividend, QQQ or STSM?
QQQ yields 0.43% while STSM yields 0.00%, so QQQ currently pays the higher dividend yield.
Is STSM better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y. The two move opposite each other, correlation -0.66, so holding both offsets the exposure while paying both fees. Which one suits a particular account depends on what it is for. This is information, not a recommendation.