QQQ vs UTSL
Invesco QQQ Trust, Series 1 vs Direxion Daily Utilities Bull 3X 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 | UTSL | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.97% | |
| AUM | $455.8B | $41M | |
| Dividend Yield | 0.41% | 1.55% | |
| Holdings | 108 | 40 | |
| YTD Return | +19.68% | -1.10% | |
| 1Y Return | +26.75% | -3.09% | |
| 3Y Return (annualized) | +26.25% | +23.43% | |
| 5Y Return (annualized) | +15.39% | +5.19% | |
| Volatility (annualized) | 30.6% | 47.7% | |
| Max Drawdown | -83.0% | -79.5% | |
| Fund Family | Invesco (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | May 3, 2017 |
QQQ vs UTSL Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Direxion Daily Utilities Bull 3X ETF (UTSL) is a ETF from Direxion Shares ETF Trust. Over the past year QQQ returned +26.75% while UTSL returned -3.09%. Year to date, QQQ is up 19.68% versus a loss of 1.10% for UTSL.
Over three years, QQQ compounded at +26.25% per year against +23.43% for UTSL; over five years the annualized figures are +15.39% and +5.19% respectively. Across the full 9-year window we track, QQQ has the edge at +13.15% annualized vs +6.68%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
UTSL has been the more volatile fund, with annualized monthly volatility of 47.7% 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 -79.5% for UTSL. 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while UTSL charges 0.97%. On a $10,000 position that is $18 vs $97 annually, a gap of $79 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 1.55% for UTSL.
Holdings Overlap
QQQ and UTSL share 4 holdings out of 134 unique holdings combined, representing a 1.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or UTSL?
QQQ has an expense ratio of 0.18% while UTSL charges 0.97%. QQQ is the cheaper option. On a $10,000 investment, that is $79 per year of difference.
Which performed better, QQQ or UTSL?
Over the past year QQQ returned +26.75% vs -3.09% for UTSL, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +13.15% vs +6.68% for UTSL. Past performance does not guarantee future results.
Which is riskier, QQQ or UTSL?
UTSL has been the more volatile fund at 47.7% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs UTSL -79.5%.
Should I hold both QQQ and UTSL?
QQQ and UTSL have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and UTSL?
QQQ and UTSL share 4 common holdings with a 1.2% weight overlap. Combined, they hold 134 unique securities.
Which pays a higher dividend, QQQ or UTSL?
QQQ yields 0.41% while UTSL yields 1.55%, so UTSL currently pays the higher dividend yield.
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