QQQ vs UDEC
Invesco QQQ Trust, Series 1 vs Innovator US Equity Ultra Buffer ETF - December
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 | UDEC | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.79% | |
| AUM | $455.8B | $247M | |
| Dividend Yield | 0.41% | 0.00% | |
| Holdings | 108 | 6 | |
| YTD Return | +19.68% | +7.28% | |
| 1Y Return | +26.75% | +13.67% | |
| 3Y Return (annualized) | +26.25% | +11.85% | |
| 5Y Return (annualized) | +15.39% | +7.53% | |
| Volatility (annualized) | 30.6% | 54.7% | |
| Max Drawdown | -83.0% | -68.5% | |
| Fund Family | Invesco (US) | Innovator ETFs Trust | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Dec 1, 2019 |
QQQ vs UDEC Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Innovator US Equity Ultra Buffer ETF - December (UDEC) is a ETF from Innovator ETFs Trust. Over the past year QQQ returned +26.75% while UDEC returned +13.67%. Year to date, QQQ is up 19.68% versus a gain of 7.28% for UDEC.
Over three years, QQQ compounded at +26.25% per year against +11.85% for UDEC; over five years the annualized figures are +15.39% and +7.53% respectively. Across the full 25-year window we track, QQQ has the edge at +13.15% annualized vs +1.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
UDEC has been the more volatile fund, with annualized monthly volatility of 54.7% 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 -68.5% for UDEC. 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while UDEC charges 0.79%. On a $10,000 position that is $18 vs $79 annually, a gap of $61 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.00% for UDEC.
Frequently Asked Questions
Which is cheaper, QQQ or UDEC?
QQQ has an expense ratio of 0.18% while UDEC charges 0.79%. QQQ is the cheaper option. On a $10,000 investment, that is $61 per year of difference.
Which performed better, QQQ or UDEC?
Over the past year QQQ returned +26.75% vs +13.67% for UDEC, so QQQ leads on 1-year performance. Over the longest common window we track (25 years), QQQ annualized +13.15% vs +1.01% for UDEC. Past performance does not guarantee future results.
Which is riskier, QQQ or UDEC?
UDEC has been the more volatile fund at 54.7% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs UDEC -68.5%.
Should I hold both QQQ and UDEC?
QQQ and UDEC have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, QQQ or UDEC?
QQQ yields 0.41% while UDEC yields 0.00%, so QQQ currently pays the higher dividend yield.
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