QQQ vs USO
Invesco QQQ Trust, Series 1 vs United States Oil Fund
Quick Verdict
QQQ has a lower expense ratio. USO delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | USO | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.86% | |
| AUM | $496.3B | $2.1B | |
| Dividend Yield | 0.44% | 0.00% | |
| Holdings | 108 | 7 | |
| YTD Return | +16.23% | +95.10% | |
| 1Y Return | +26.23% | +83.00% | |
| 3Y Return (annualized) | +25.75% | +22.86% | |
| 5Y Return (annualized) | +14.78% | +25.38% | |
| Volatility (annualized) | 30.6% | 37.8% | |
| Max Drawdown | -83.0% | -98.2% | |
| Fund Family | Invesco (US) | USCF Investments | |
| Category | Equity | Commodity | |
| Inception | Mar 10, 1999 | Apr 10, 2006 |
QQQ vs USO Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and United States Oil Fund (USO) is a ETF from USCF Investments. Over the past year QQQ returned +26.23% while USO returned +83.00%. Year to date, QQQ is up 16.23% versus a gain of 95.10% for USO.
Over three years, QQQ compounded at +25.75% per year against +22.86% for USO; over five years the annualized figures are +14.78% and +25.38% respectively. Across the full 20-year window we track, QQQ has the edge at +13.02% annualized vs -6.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
USO has been the more volatile fund, with annualized monthly volatility of 37.8% 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 -98.2% for USO. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while USO charges 0.86%. On a $10,000 position that is $18 vs $86 annually, a gap of $68 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.00% for USO.
Holdings Overlap
QQQ and USO 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 USO?
QQQ has an expense ratio of 0.18% while USO charges 0.86%. QQQ is the cheaper option. On a $10,000 investment, that is $68 per year of difference.
Which performed better, QQQ or USO?
Over the past year QQQ returned +26.23% vs +83.00% for USO, so USO leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.02% vs -6.63% for USO. Past performance does not guarantee future results.
Which is riskier, QQQ or USO?
USO has been the more volatile fund at 37.8% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs USO -98.2%.
Should I hold both QQQ and USO?
QQQ and USO have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and USO?
QQQ and USO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, QQQ or USO?
QQQ yields 0.44% while USO yields 0.00%, so QQQ currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.