QQQU vs SPY
Direxion Daily Magnificent 7 Bull 2X ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, QQQU or SPY?
Trading-Leveraged Equity against Large Cap Blend.
SPY has a lower expense ratio. QQQU led over 1Y and the full window. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 97.3%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQU | SPY |
|---|---|---|
| Expense Ratio | 0.98% | 0.09%Best |
| AUM | $77M | $811.2B |
| Dividend Yield | 9.34% | 0.98% |
| Holdings | 26 | 1,515 |
| YTD Return | +15.14%Best | +13.54% |
| 1Y Return | +17.49%Best | +16.25% |
| 3Y Return (annualized) | - | +23.72% |
| 5Y Return (annualized) | - | +13.95% |
| Volatility (annualized) | 43.8% | 11.9%Best |
| Max Drawdown | -53.7% | -18.8%Best |
| $10,000 over 2.6 years | $27,572Best | $15,517 |
| Top 10 Weight | 97.3% | 38.2%Best |
| Fund Family | Direxion Shares ETF Trust | State Street Investment Management |
| Category | Alternative | Equity |
| Style | Trading-Leveraged Equity | Large Cap Blend |
| Inception | Mar 7, 2024 | Jan 22, 1993 |
Volatility and max drawdown, and the $10,000 over 2.6 years row, are measured over the window both funds cover: Mar 7, 2024 to Oct 2, 2026 (2.6 years).
QQQU vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.6 years both funds cover.
QQQU vs SPY Performance
Direxion Daily Magnificent 7 Bull 2X ETF (QQQU) is an ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year QQQU returned +17.49% while SPY returned +16.25%. Year to date, QQQU is up 15.14% versus a gain of 13.54% for SPY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQU has been the more volatile fund, with annualized monthly volatility of 43.8% compared with 11.9% for SPY. 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 -53.7% for QQQU and -18.8% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQU charges 0.98% per year while SPY charges 0.09%. On a $10,000 position that is $98 vs $9 annually, a gap of $89 per year that compounds over a long holding period. On income, QQQU currently yields 9.34% against 0.98% for SPY.
Holdings Overlap
79.5% of QQQU's money is in holdings SPY also owns. 31.6% of SPY's money is in holdings QQQU also owns.
Most of QQQU is already inside SPY. Owning both mostly buys the same companies twice.
7 positions in common, counted across the 10 positions we hold weights for in QQQU and 504 in SPY, against full books of 26 and 1,515.
What only one of them owns
Our book lists 490 positions for SPY that do not appear in our book for QQQU (67.6% of the fund), and 3 for QQQU that do not appear in SPY (17.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
79.5% of QQQU is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQU or SPY?
QQQU has an expense ratio of 0.98% while SPY charges 0.09%. SPY is the cheaper option, by $89 a year on a $10,000 investment.
Which performed better, QQQU or SPY?
Over the past year QQQU returned +17.49% vs +16.25% for SPY, so QQQU leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQU or SPY?
QQQU has been the more volatile fund at 43.8% annualized versus 11.9% for SPY. Worst drawdown: QQQU -53.7% vs SPY -18.8%.
Should I hold both QQQU and SPY?
QQQU and SPY have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQU and SPY?
79.5% of QQQU's money is in holdings SPY also owns. 31.6% of SPY's is in holdings QQQU also owns. They hold 7 positions in common, counted across the 10 positions we hold weights for in QQQU and 504 in SPY.
Which pays a higher dividend, QQQU or SPY?
QQQU yields 9.34% while SPY yields 0.98%, so QQQU currently pays the higher dividend yield.
Is SPY better than QQQU?
SPY has a lower expense ratio. QQQU led over 1Y and the full window. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 97.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.