QQQ vs ULTY
Invesco QQQ Trust, Series 1 vs YieldMax Ultra Option Income Strategy ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | ULTY | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.30% | |
| AUM | $455.8B | $758M | |
| Dividend Yield | 0.41% | 48.37% | |
| Holdings | 108 | 99 | |
| YTD Return | +18.20% | +6.26% | |
| 1Y Return | +27.63% | -7.97% | |
| 3Y Return (annualized) | +25.54% | - | |
| 5Y Return (annualized) | +15.12% | - | |
| Volatility (annualized) | 30.6% | 22.9% | |
| Max Drawdown | -83.0% | -26.9% | |
| Fund Family | Invesco (US) | YieldMax ETF | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Feb 28, 2024 |
QQQ vs ULTY Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and YieldMax Ultra Option Income Strategy ETF (ULTY) is a ETF from YieldMax ETF. Over the past year QQQ returned +27.63% while ULTY returned -7.97%. Year to date, QQQ is up 18.20% versus a gain of 6.26% for ULTY.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 22.9% for ULTY. 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 -26.9% for ULTY. 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while ULTY charges 1.30%. On a $10,000 position that is $18 vs $130 annually, a gap of $112 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 48.37% for ULTY.
Holdings Overlap
QQQ and ULTY share 12 holdings out of 117 unique holdings combined, representing a 20.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or ULTY?
QQQ has an expense ratio of 0.18% while ULTY charges 1.30%. QQQ is the cheaper option. On a $10,000 investment, that is $112 per year of difference.
Which performed better, QQQ or ULTY?
Over the past year QQQ returned +27.63% vs -7.97% for ULTY, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.11% vs +2.63% for ULTY. Past performance does not guarantee future results.
Which is riskier, QQQ or ULTY?
QQQ has been the more volatile fund at 30.6% annualized versus 22.9% for ULTY. Worst drawdown: QQQ -83.0% vs ULTY -26.9%.
Should I hold both QQQ and ULTY?
QQQ and ULTY have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and ULTY?
QQQ and ULTY share 12 common holdings with a 20.3% weight overlap. Combined, they hold 117 unique securities.
Which pays a higher dividend, QQQ or ULTY?
QQQ yields 0.41% while ULTY yields 48.37%, so ULTY currently pays the higher dividend yield.
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