QQQ vs UCO

Quick Verdict

QQQ has a lower expense ratio. UCO delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: UCOMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQUCOWinner
Expense Ratio0.18%0.95%
AUM$455.8B$416M
Dividend Yield0.41%0.00%
Holdings1089
YTD Return+17.46%+117.02%
1Y Return+26.02%+83.18%
3Y Return (annualized)+25.51%+10.46%
5Y Return (annualized)+15.12%+17.99%
Volatility (annualized)30.6%65.1%
Max Drawdown-83.0%-100.0%
Fund FamilyInvesco (US)ProShares
CategoryEquityAlternative
InceptionMar 10, 1999Nov 24, 2008

QQQ vs UCO Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares Ultra Bloomberg Crude Oil (UCO) is a ETF from ProShares. Over the past year QQQ returned +26.02% while UCO returned +83.18%. Year to date, QQQ is up 17.46% versus a gain of 117.02% for UCO.

Over three years, QQQ compounded at +25.51% per year against +10.46% for UCO; over five years the annualized figures are +15.12% and +17.99% respectively. Across the full 18-year window we track, QQQ has the edge at +13.08% annualized vs -24.03%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

UCO has been the more volatile fund, with annualized monthly volatility of 65.1% 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 -100.0% for UCO. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while UCO 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 0.00% for UCO.

Holdings Overlap

0.0%overlap

QQQ and UCO 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 UCO?

QQQ has an expense ratio of 0.18% while UCO 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 UCO?

Over the past year QQQ returned +26.02% vs +83.18% for UCO, so UCO leads on 1-year performance. Over the longest common window we track (18 years), QQQ annualized +13.08% vs -24.03% for UCO. Past performance does not guarantee future results.

Which is riskier, QQQ or UCO?

UCO has been the more volatile fund at 65.1% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs UCO -100.0%.

Should I hold both QQQ and UCO?

QQQ and UCO have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and UCO?

QQQ and UCO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.

Which pays a higher dividend, QQQ or UCO?

QQQ yields 0.41% while UCO yields 0.00%, so QQQ currently pays the higher dividend yield.

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