QQQ vs TMF
Invesco QQQ Trust, Series 1 vs Direxion Daily 20+ Year Treasury Bull 3X ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | TMF | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.90% | |
| AUM | $455.8B | $2.3B | |
| Dividend Yield | 0.41% | 4.08% | |
| Holdings | 108 | 14 | |
| YTD Return | +17.85% | -16.04% | |
| 1Y Return | +26.45% | -16.79% | |
| 3Y Return (annualized) | +26.07% | -18.37% | |
| 5Y Return (annualized) | +15.16% | -34.13% | |
| Volatility (annualized) | 30.6% | 40.7% | |
| Max Drawdown | -83.0% | -93.3% | |
| Fund Family | Invesco (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Apr 16, 2009 |
QQQ vs TMF Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF) is a ETF from Direxion Shares ETF Trust. Over the past year QQQ returned +26.45% while TMF returned -16.79%. Year to date, QQQ is up 17.85% versus a loss of 16.04% for TMF.
Over three years, QQQ compounded at +26.07% per year against -18.37% for TMF; over five years the annualized figures are +15.16% and -34.13% respectively. Across the full 17-year window we track, QQQ has the edge at +13.09% annualized vs -7.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TMF has been the more volatile fund, with annualized monthly volatility of 40.7% 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 -93.3% for TMF. 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 -0.01. They move independently enough that combining them can meaningfully diversify a portfolio.
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 0.41% against 4.08% for TMF.
Holdings Overlap
QQQ and TMF share 0 holdings out of 108 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 TMF?
QQQ has an expense ratio of 0.18% while TMF charges 0.90%. QQQ is the cheaper option. On a $10,000 investment, that is $72 per year of difference.
Which performed better, QQQ or TMF?
Over the past year QQQ returned +26.45% vs -16.79% for TMF, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +13.09% vs -7.98% for TMF. Past performance does not guarantee future results.
Which is riskier, QQQ or TMF?
TMF has been the more volatile fund at 40.7% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs TMF -93.3%.
Should I hold both QQQ and TMF?
QQQ and TMF have a monthly-return correlation of -0.01, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TMF?
QQQ and TMF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 108 unique securities.
Which pays a higher dividend, QQQ or TMF?
QQQ yields 0.41% while TMF yields 4.08%, so TMF currently pays the higher dividend yield.
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