QQQ vs ULE

Quick Verdict

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

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQULEWinner
Expense Ratio0.18%0.95%
AUM$455.8B$4M
Dividend Yield0.41%0.00%
Holdings1083
YTD Return+17.46%-3.64%
1Y Return+26.02%-2.53%
3Y Return (annualized)+25.51%+3.02%
5Y Return (annualized)+15.12%-2.56%
Volatility (annualized)30.6%18.1%
Max Drawdown-83.0%-72.7%
Fund FamilyInvesco (US)ProShares
CategoryEquityAlternative
InceptionMar 10, 1999Nov 24, 2008

QQQ vs ULE Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares Ultra Euro (ULE) is a ETF from ProShares. Over the past year QQQ returned +26.02% while ULE returned -2.53%. Year to date, QQQ is up 17.46% versus a loss of 3.64% for ULE.

Over three years, QQQ compounded at +25.51% per year against +3.02% for ULE; over five years the annualized figures are +15.12% and -2.56% respectively. Across the full 18-year window we track, QQQ has the edge at +13.08% annualized vs -3.87%. 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 18.1% for ULE. 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 -72.7% for ULE. 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while ULE 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 ULE.

Frequently Asked Questions

Which is cheaper, QQQ or ULE?

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

Over the past year QQQ returned +26.02% vs -2.53% for ULE, so QQQ leads on 1-year performance. Over the longest common window we track (18 years), QQQ annualized +13.08% vs -3.87% for ULE. Past performance does not guarantee future results.

Which is riskier, QQQ or ULE?

QQQ has been the more volatile fund at 30.6% annualized versus 18.1% for ULE. Worst drawdown: QQQ -83.0% vs ULE -72.7%.

Should I hold both QQQ and ULE?

QQQ and ULE have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, QQQ or ULE?

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

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