QQQ vs TWM
Invesco QQQ Trust, Series 1 vs ProShares UltraShort Russell2000
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 | TWM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.95% | |
| AUM | $455.8B | $44M | |
| Dividend Yield | 0.41% | 5.68% | |
| Holdings | 108 | 10 | |
| YTD Return | +19.68% | -33.98% | |
| 1Y Return | +26.75% | -43.62% | |
| 3Y Return (annualized) | +26.25% | -59.13% | |
| 5Y Return (annualized) | +15.39% | -41.80% | |
| Volatility (annualized) | 30.6% | 43.0% | |
| Max Drawdown | -83.0% | -100.0% | |
| Fund Family | Invesco (US) | ProShares | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Jan 23, 2007 |
QQQ vs TWM Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares UltraShort Russell2000 (TWM) is a ETF from ProShares. Over the past year QQQ returned +26.75% while TWM returned -43.62%. Year to date, QQQ is up 19.68% versus a loss of 33.98% for TWM.
Over three years, QQQ compounded at +26.25% per year against -59.13% for TWM; over five years the annualized figures are +15.39% and -41.80% respectively. Across the full 20-year window we track, QQQ has the edge at +13.15% annualized vs -35.19%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TWM has been the more volatile fund, with annualized monthly volatility of 43.0% 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 -100.0% for TWM. 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 -0.71. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TWM charges 0.95%. On a $10,000 position that is $18 vs $95 annually, a gap of $77 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 5.68% for TWM.
Holdings Overlap
QQQ and TWM share 0 holdings out of 104 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 TWM?
QQQ has an expense ratio of 0.18% while TWM charges 0.95%. QQQ is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, QQQ or TWM?
Over the past year QQQ returned +26.75% vs -43.62% for TWM, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.15% vs -35.19% for TWM. Past performance does not guarantee future results.
Which is riskier, QQQ or TWM?
TWM has been the more volatile fund at 43.0% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs TWM -100.0%.
Should I hold both QQQ and TWM?
QQQ and TWM have a monthly-return correlation of -0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TWM?
QQQ and TWM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, QQQ or TWM?
QQQ yields 0.41% while TWM yields 5.68%, so TWM currently pays the higher dividend yield.
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