QQQ vs TSMZ
Invesco QQQ Trust, Series 1 vs Direxion Daily TSM Bear 1X ETF
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 | TSMZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.01% | |
| AUM | $496.3B | $3M | |
| Dividend Yield | 0.44% | 4.38% | |
| Holdings | 108 | 7 | |
| YTD Return | +16.64% | -29.98% | |
| 1Y Return | +27.27% | -51.46% | |
| 3Y Return (annualized) | +25.96% | - | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 33.9% | |
| Max Drawdown | -83.0% | -74.0% | |
| Fund Family | Invesco (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Oct 3, 2024 |
QQQ vs TSMZ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Direxion Daily TSM Bear 1X ETF (TSMZ) is a ETF from Direxion Shares ETF Trust. Over the past year QQQ returned +27.27% while TSMZ returned -51.46%. Year to date, QQQ is up 16.64% versus a loss of 29.98% for TSMZ.
Risk: Volatility and Drawdowns
TSMZ has been the more volatile fund, with annualized monthly volatility of 33.9% 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 -74.0% for TSMZ. 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 -0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TSMZ charges 1.01%. On a $10,000 position that is $18 vs $101 annually, a gap of $83 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 4.38% for TSMZ.
Holdings Overlap
QQQ and TSMZ share 0 holdings out of 105 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 TSMZ?
QQQ has an expense ratio of 0.18% while TSMZ charges 1.01%. QQQ is the cheaper option. On a $10,000 investment, that is $83 per year of difference.
Which performed better, QQQ or TSMZ?
Over the past year QQQ returned +27.27% vs -51.46% for TSMZ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.03% vs -43.46% for TSMZ. Past performance does not guarantee future results.
Which is riskier, QQQ or TSMZ?
TSMZ has been the more volatile fund at 33.9% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs TSMZ -74.0%.
Should I hold both QQQ and TSMZ?
QQQ and TSMZ have a monthly-return correlation of -0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TSMZ?
QQQ and TSMZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, QQQ or TSMZ?
QQQ yields 0.44% while TSMZ yields 4.38%, so TSMZ currently pays the higher dividend yield.
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