QQQ vs UCYB

Quick Verdict

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

Lower Fees: QQQHigher Returns: UCYBMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQUCYBWinner
Expense Ratio0.18%0.95%
AUM$455.8B$7M
Dividend Yield0.41%1.58%
Holdings1086
YTD Return+17.46%+82.21%
1Y Return+26.02%+75.11%
3Y Return (annualized)+25.51%+49.69%
5Y Return (annualized)+15.12%+17.81%
Volatility (annualized)30.6%47.9%
Max Drawdown-83.0%-62.9%
Fund FamilyInvesco (US)ProShares
CategoryEquityAlternative
InceptionMar 10, 1999Jan 19, 2021

QQQ vs UCYB Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares Ultra Nasdaq Cybersecurity ETF (UCYB) is a ETF from ProShares. Over the past year QQQ returned +26.02% while UCYB returned +75.11%. Year to date, QQQ is up 17.46% versus a gain of 82.21% for UCYB.

Over three years, QQQ compounded at +25.51% per year against +49.69% for UCYB; over five years the annualized figures are +15.12% and +17.81% respectively. Across the full 6-year window we track, UCYB has the edge at +17.50% annualized vs +13.08%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

UCYB has been the more volatile fund, with annualized monthly volatility of 47.9% 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 -62.9% for UCYB. 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while UCYB 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 1.58% for UCYB.

Frequently Asked Questions

Which is cheaper, QQQ or UCYB?

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

Over the past year QQQ returned +26.02% vs +75.11% for UCYB, so UCYB leads on 1-year performance. Over the longest common window we track (6 years), QQQ annualized +13.08% vs +17.50% for UCYB. Past performance does not guarantee future results.

Which is riskier, QQQ or UCYB?

UCYB has been the more volatile fund at 47.9% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs UCYB -62.9%.

Should I hold both QQQ and UCYB?

QQQ and UCYB have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, QQQ or UCYB?

QQQ yields 0.41% while UCYB yields 1.58%, so UCYB currently pays the higher dividend yield.

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