QQQ vs USE

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

MetricQQQUSEWinner
Expense Ratio0.18%0.79%
AUM$455.8B$6M
Dividend Yield0.41%2.63%
Holdings1086
YTD Return+18.20%+33.60%
1Y Return+27.63%+13.46%
3Y Return (annualized)+25.54%+9.40%
5Y Return (annualized)+15.12%-
Volatility (annualized)30.6%33.8%
Max Drawdown-83.0%-28.2%
Fund FamilyInvesco (US)USCF Investments
CategoryEquityEquity
InceptionMar 10, 1999May 3, 2023

QQQ vs USE Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and USCF Energy Commodity Strategy Absolute Return Fund (USE) is a ETF from USCF Investments. Over the past year QQQ returned +27.63% while USE returned +13.46%. Year to date, QQQ is up 18.20% versus a gain of 33.60% for USE.

Over three years, QQQ compounded at +25.54% per year against +9.40% for USE. Across the full 3-year window we track, USE has the edge at +14.27% annualized vs +13.11%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

USE has been the more volatile fund, with annualized monthly volatility of 33.8% 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 -28.2% for USE. 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 -0.18. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while USE charges 0.79%. On a $10,000 position that is $18 vs $79 annually, a gap of $61 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 2.63% for USE.

Holdings Overlap

0.0%overlap

QQQ and USE 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 USE?

QQQ has an expense ratio of 0.18% while USE charges 0.79%. QQQ is the cheaper option. On a $10,000 investment, that is $61 per year of difference.

Which performed better, QQQ or USE?

Over the past year QQQ returned +27.63% vs +13.46% for USE, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.11% vs +14.27% for USE. Past performance does not guarantee future results.

Which is riskier, QQQ or USE?

USE has been the more volatile fund at 33.8% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs USE -28.2%.

Should I hold both QQQ and USE?

QQQ and USE have a monthly-return correlation of -0.18, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and USE?

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

Which pays a higher dividend, QQQ or USE?

QQQ yields 0.41% while USE yields 2.63%, so USE currently pays the higher dividend yield.

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