QQQ vs UFO
Invesco QQQ Trust, Series 1 vs Procure Space ETF
Quick Verdict
QQQ has a lower expense ratio. UFO delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | UFO | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.94% | |
| AUM | $496.3B | $633M | |
| Dividend Yield | 0.44% | 0.34% | |
| Holdings | 108 | 51 | |
| YTD Return | +16.64% | +14.03% | |
| 1Y Return | +27.27% | +54.52% | |
| 3Y Return (annualized) | +25.96% | +38.15% | |
| 5Y Return (annualized) | +14.54% | +10.83% | |
| Volatility (annualized) | 30.6% | 32.3% | |
| Max Drawdown | -83.0% | -50.3% | |
| Fund Family | Invesco (US) | Procure ETFs | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Apr 10, 2019 |
QQQ vs UFO Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Procure Space ETF (UFO) is a ETF from Procure ETFs. Over the past year QQQ returned +27.27% while UFO returned +54.52%. Year to date, QQQ is up 16.64% versus a gain of 14.03% for UFO.
Over three years, QQQ compounded at +25.96% per year against +38.15% for UFO; over five years the annualized figures are +14.54% and +10.83% respectively. Across the full 7-year window we track, QQQ has the edge at +13.03% annualized vs +9.78%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
UFO has been the more volatile fund, with annualized monthly volatility of 32.3% 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 -50.3% for UFO. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while UFO charges 0.94%. On a $10,000 position that is $18 vs $94 annually, a gap of $76 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.34% for UFO.
Holdings Overlap
QQQ and UFO share 4 holdings out of 163 unique holdings combined, representing a 1.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or UFO?
QQQ has an expense ratio of 0.18% while UFO charges 0.94%. QQQ is the cheaper option. On a $10,000 investment, that is $76 per year of difference.
Which performed better, QQQ or UFO?
Over the past year QQQ returned +27.27% vs +54.52% for UFO, so UFO leads on 1-year performance. Over the longest common window we track (7 years), QQQ annualized +13.03% vs +9.78% for UFO. Past performance does not guarantee future results.
Which is riskier, QQQ or UFO?
UFO has been the more volatile fund at 32.3% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs UFO -50.3%.
Should I hold both QQQ and UFO?
QQQ and UFO have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and UFO?
QQQ and UFO share 4 common holdings with a 1.8% weight overlap. Combined, they hold 163 unique securities.
Which pays a higher dividend, QQQ or UFO?
QQQ yields 0.44% while UFO yields 0.34%, so QQQ currently pays the higher dividend yield.
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