QQQ vs USDU

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

MetricQQQUSDUWinner
Expense Ratio0.18%0.51%
AUM$455.8B$464M
Dividend Yield0.41%3.70%
Holdings1082
YTD Return+19.68%+2.44%
1Y Return+26.75%+5.00%
3Y Return (annualized)+26.25%+4.51%
5Y Return (annualized)+15.39%+5.23%
Volatility (annualized)30.6%6.2%
Max Drawdown-83.0%-14.5%
Fund FamilyInvesco (US)WisdomTree Investments
CategoryEquityAlternative
InceptionMar 10, 1999Dec 18, 2013

QQQ vs USDU Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and WisdomTree Bloomberg US Dollar Bullish Fund (USDU) is a ETF from WisdomTree Investments. Over the past year QQQ returned +26.75% while USDU returned +5.00%. Year to date, QQQ is up 19.68% versus a gain of 2.44% for USDU.

Over three years, QQQ compounded at +26.25% per year against +4.51% for USDU; over five years the annualized figures are +15.39% and +5.23% respectively. Across the full 13-year window we track, QQQ has the edge at +13.15% annualized vs +3.20%. 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 6.2% for USDU. 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 -14.5% for USDU. 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 -0.34. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while USDU charges 0.51%. On a $10,000 position that is $18 vs $51 annually, a gap of $33 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 3.70% for USDU.

Holdings Overlap

0.0%overlap

QQQ and USDU 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 USDU?

QQQ has an expense ratio of 0.18% while USDU charges 0.51%. QQQ is the cheaper option. On a $10,000 investment, that is $33 per year of difference.

Which performed better, QQQ or USDU?

Over the past year QQQ returned +26.75% vs +5.00% for USDU, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), QQQ annualized +13.15% vs +3.20% for USDU. Past performance does not guarantee future results.

Which is riskier, QQQ or USDU?

QQQ has been the more volatile fund at 30.6% annualized versus 6.2% for USDU. Worst drawdown: QQQ -83.0% vs USDU -14.5%.

Should I hold both QQQ and USDU?

QQQ and USDU have a monthly-return correlation of -0.34, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and USDU?

QQQ and USDU share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.

Which pays a higher dividend, QQQ or USDU?

QQQ yields 0.41% while USDU yields 3.70%, so USDU currently pays the higher dividend yield.

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