QQQ vs TMF
Invesco QQQ Trust, Series 1 vs Direxion Daily 20+ Year Treasury Bull 3X ETF
Which is better, QQQ or TMF?
Large Cap Growth against Trading-Leveraged Debt.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
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 | TMF |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.90% |
| AUM | $483.5B | $2.2B |
| Dividend Yield | 0.44% | 4.69% |
| Holdings | 107 | 14 |
| YTD Return | +17.95%Best | -18.78% |
| 1Y Return | +21.77%Best | -24.05% |
| 3Y Return (annualized) | +25.63%Best | -16.76% |
| 5Y Return (annualized) | +15.24%Best | -35.73% |
| Volatility (annualized) | 17.5%Best | 40.6% |
| Max Drawdown | -35.1%Best | -93.7% |
| $10,000 over 5 years | $20,324Best | $1,097 |
| Fund Family | Invesco (US) | Direxion Shares ETF Trust |
| Category | Equity | Alternative |
| Style | Large Cap Growth | Trading-Leveraged Debt |
| Inception | Mar 10, 1999 | Apr 16, 2009 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Apr 16, 2009 to Sep 18, 2026 (17.4 years).
QQQ vs TMF 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 covers the 17.4 years both funds cover.
QQQ vs TMF Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF) is an ETF from Direxion Shares ETF Trust. Over the past year QQQ returned +21.77% while TMF returned -24.05%. Year to date, QQQ is up 17.95% versus a loss of 18.78% for TMF.
Over three years, QQQ compounded at +25.63% per year against -16.76% for TMF; over five years the annualized figures are +15.24% and -35.73% respectively. Across the full 17-year window we track, QQQ has the edge at +19.54% annualized vs -8.11%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TMF has been the more volatile fund, with annualized monthly volatility of 40.6% compared with 17.5% 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 -35.1% for QQQ and -93.7% for TMF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at -0.01. They move largely independently of each other.
Fees and Cost Over Time
QQQ charges 0.18% per year while TMF charges 0.90%. On a $10,000 position that is $18 vs $90 annually, a gap of $72 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 4.69% for TMF.
Holdings Overlap
We hold position weights for 102 holdings in QQQ and 4 in TMF, totalling 99.9% and 98.3% 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 102 positions we hold weights for in QQQ and 4 in TMF, against full books of 107 and 14.
You are not choosing between two funds in isolation.
Whichever of QQQ and TMF 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 TMF?
QQQ has an expense ratio of 0.18% while TMF charges 0.90%. QQQ is the cheaper option, by $72 a year on a $10,000 investment.
Which performed better, QQQ or TMF?
Over the past year QQQ returned +21.77% vs -24.05% for TMF, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +19.54% vs -8.11% for TMF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or TMF?
TMF has been the more volatile fund at 40.6% annualized versus 17.5% for QQQ. Worst drawdown: QQQ -35.1% vs TMF -93.7%.
Should I hold both QQQ and TMF?
QQQ and TMF have a monthly-return correlation of -0.01, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, QQQ or TMF?
QQQ yields 0.44% while TMF yields 4.69%, so TMF currently pays the higher dividend yield.
Is TMF better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.