QQQ vs UNG
Invesco QQQ Trust, Series 1 vs United States Natural Gas Fund LP
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 | UNG | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.17% | |
| AUM | $496.3B | $504M | |
| Dividend Yield | 0.44% | 0.00% | |
| Holdings | 108 | 8 | |
| YTD Return | +16.23% | -17.00% | |
| 1Y Return | +26.23% | -17.48% | |
| 3Y Return (annualized) | +25.75% | -28.94% | |
| 5Y Return (annualized) | +14.78% | -28.60% | |
| Volatility (annualized) | 30.6% | 47.0% | |
| Max Drawdown | -83.0% | -99.9% | |
| Fund Family | Invesco (US) | USCF Investments | |
| Category | Equity | Commodity | |
| Inception | Mar 10, 1999 | Apr 18, 2007 |
QQQ vs UNG Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and United States Natural Gas Fund LP (UNG) is a ETF from USCF Investments. Over the past year QQQ returned +26.23% while UNG returned -17.48%. Year to date, QQQ is up 16.23% versus a loss of 17.00% for UNG.
Over three years, QQQ compounded at +25.75% per year against -28.94% for UNG; over five years the annualized figures are +14.78% and -28.60% respectively. Across the full 19-year window we track, QQQ has the edge at +13.02% annualized vs -28.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
UNG has been the more volatile fund, with annualized monthly volatility of 47.0% 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 -99.9% for UNG. 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 0.05. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while UNG charges 1.17%. On a $10,000 position that is $18 vs $117 annually, a gap of $99 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.00% for UNG.
Holdings Overlap
QQQ and UNG share 0 holdings out of 104 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 UNG?
QQQ has an expense ratio of 0.18% while UNG charges 1.17%. QQQ is the cheaper option. On a $10,000 investment, that is $99 per year of difference.
Which performed better, QQQ or UNG?
Over the past year QQQ returned +26.23% vs -17.48% for UNG, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), QQQ annualized +13.02% vs -28.45% for UNG. Past performance does not guarantee future results.
Which is riskier, QQQ or UNG?
UNG has been the more volatile fund at 47.0% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs UNG -99.9%.
Should I hold both QQQ and UNG?
QQQ and UNG have a monthly-return correlation of 0.05, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and UNG?
QQQ and UNG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, QQQ or UNG?
QQQ yields 0.44% while UNG yields 0.00%, so QQQ currently pays the higher dividend yield.
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