QQQ vs UDN
Invesco QQQ Trust, Series 1 vs Invesco DB US Dollar Index Bearish Fund 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 | UDN | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.77% | |
| AUM | $496.3B | $101M | |
| Dividend Yield | 0.44% | 2.95% | |
| Holdings | 108 | 5 | |
| YTD Return | +16.64% | +0.66% | |
| 1Y Return | +27.27% | +1.51% | |
| 3Y Return (annualized) | +25.96% | +1.91% | |
| 5Y Return (annualized) | +14.54% | -0.87% | |
| Volatility (annualized) | 30.6% | 8.0% | |
| Max Drawdown | -83.0% | -41.7% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Feb 20, 2007 |
QQQ vs UDN Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco DB US Dollar Index Bearish Fund ETF (UDN) is a ETF from Invesco (US). Over the past year QQQ returned +27.27% while UDN returned +1.51%. Year to date, QQQ is up 16.64% versus a gain of 0.66% for UDN.
Over three years, QQQ compounded at +25.96% per year against +1.91% for UDN; over five years the annualized figures are +14.54% and -0.87% respectively. Across the full 20-year window we track, QQQ has the edge at +13.03% annualized vs -0.88%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 8.0% for UDN. 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 -41.7% for UDN. 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while UDN charges 0.77%. On a $10,000 position that is $18 vs $77 annually, a gap of $59 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 2.95% for UDN.
Holdings Overlap
QQQ and UDN share 0 holdings out of 103 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 UDN?
QQQ has an expense ratio of 0.18% while UDN charges 0.77%. QQQ is the cheaper option. On a $10,000 investment, that is $59 per year of difference.
Which performed better, QQQ or UDN?
Over the past year QQQ returned +27.27% vs +1.51% for UDN, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.03% vs -0.88% for UDN. Past performance does not guarantee future results.
Which is riskier, QQQ or UDN?
QQQ has been the more volatile fund at 30.6% annualized versus 8.0% for UDN. Worst drawdown: QQQ -83.0% vs UDN -41.7%.
Should I hold both QQQ and UDN?
QQQ and UDN have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and UDN?
QQQ and UDN share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, QQQ or UDN?
QQQ yields 0.44% while UDN yields 2.95%, so UDN currently pays the higher dividend yield.
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