QQQ vs TZA
Invesco QQQ Trust, Series 1 vs Direxion Daily Small Cap Bear 3X 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 | TZA | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.99% | |
| AUM | $496.3B | $228M | |
| Dividend Yield | 0.44% | 4.66% | |
| Holdings | 108 | 11 | |
| YTD Return | +16.64% | -46.50% | |
| 1Y Return | +27.27% | -61.58% | |
| 3Y Return (annualized) | +25.96% | -46.71% | |
| 5Y Return (annualized) | +14.54% | -32.81% | |
| Volatility (annualized) | 30.6% | 55.9% | |
| Max Drawdown | -83.0% | -100.0% | |
| Fund Family | Invesco (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Nov 5, 2008 |
QQQ vs TZA Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Direxion Daily Small Cap Bear 3X ETF (TZA) is a ETF from Direxion Shares ETF Trust. Over the past year QQQ returned +27.27% while TZA returned -61.58%. Year to date, QQQ is up 16.64% versus a loss of 46.50% for TZA.
Over three years, QQQ compounded at +25.96% per year against -46.71% for TZA; over five years the annualized figures are +14.54% and -32.81% respectively. Across the full 18-year window we track, QQQ has the edge at +13.03% annualized vs -48.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TZA has been the more volatile fund, with annualized monthly volatility of 55.9% 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 -100.0% for TZA. 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 -0.77. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TZA charges 0.99%. On a $10,000 position that is $18 vs $99 annually, a gap of $81 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 4.66% for TZA.
Holdings Overlap
QQQ and TZA 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 TZA?
QQQ has an expense ratio of 0.18% while TZA charges 0.99%. QQQ is the cheaper option. On a $10,000 investment, that is $81 per year of difference.
Which performed better, QQQ or TZA?
Over the past year QQQ returned +27.27% vs -61.58% for TZA, so QQQ leads on 1-year performance. Over the longest common window we track (18 years), QQQ annualized +13.03% vs -48.84% for TZA. Past performance does not guarantee future results.
Which is riskier, QQQ or TZA?
TZA has been the more volatile fund at 55.9% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs TZA -100.0%.
Should I hold both QQQ and TZA?
QQQ and TZA have a monthly-return correlation of -0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TZA?
QQQ and TZA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, QQQ or TZA?
QQQ yields 0.44% while TZA yields 4.66%, so TZA currently pays the higher dividend yield.
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