QQQ vs TMV

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQTMVWinner
Expense Ratio0.18%0.97%
AUM$455.8B$180M
Dividend Yield0.41%2.60%
Holdings1089
YTD Return+19.68%+14.67%
1Y Return+26.75%+16.17%
3Y Return (annualized)+26.25%+8.83%
5Y Return (annualized)+15.39%+26.68%
Volatility (annualized)30.6%40.1%
Max Drawdown-83.0%-99.1%
Fund FamilyInvesco (US)Direxion Shares ETF Trust
CategoryEquityAlternative
InceptionMar 10, 1999Apr 16, 2009

QQQ vs TMV Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Direxion Daily 20+ Year Treasury Bear 3X ETF (TMV) is a ETF from Direxion Shares ETF Trust. Over the past year QQQ returned +26.75% while TMV returned +16.17%. Year to date, QQQ is up 19.68% versus a gain of 14.67% for TMV.

Over three years, QQQ compounded at +26.25% per year against +8.83% for TMV; over five years the annualized figures are +15.39% and +26.68% respectively. Across the full 17-year window we track, QQQ has the edge at +13.15% annualized vs -14.88%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TMV has been the more volatile fund, with annualized monthly volatility of 40.1% 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 -99.1% for TMV. 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 TMV charges 0.97%. On a $10,000 position that is $18 vs $97 annually, a gap of $79 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 2.60% for TMV.

Holdings Overlap

0.0%overlap

QQQ and TMV 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 TMV?

QQQ has an expense ratio of 0.18% while TMV charges 0.97%. QQQ is the cheaper option. On a $10,000 investment, that is $79 per year of difference.

Which performed better, QQQ or TMV?

Over the past year QQQ returned +26.75% vs +16.17% for TMV, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +13.15% vs -14.88% for TMV. Past performance does not guarantee future results.

Which is riskier, QQQ or TMV?

TMV has been the more volatile fund at 40.1% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs TMV -99.1%.

Should I hold both QQQ and TMV?

QQQ and TMV 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 TMV?

QQQ and TMV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.

Which pays a higher dividend, QQQ or TMV?

QQQ yields 0.41% while TMV yields 2.60%, so TMV currently pays the higher dividend yield.

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