QQQU vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricQQQUVYMWinner
Expense Ratio0.98%0.04%
AUM$64M$79.0B
Dividend Yield10.48%2.86%
Holdings14568
YTD Return+1.35%+16.53%
1Y Return+18.53%+25.03%
3Y Return (annualized)-+18.54%
5Y Return (annualized)-+12.25%
Volatility (annualized)45.1%14.6%
Max Drawdown-53.7%-58.8%
Fund FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
InceptionMar 7, 2024Nov 10, 2006

QQQU vs VYM Performance

Direxion Daily Magnificent 7 Bull 2X ETF (QQQU) is a ETF from Direxion Shares ETF Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year QQQU returned +18.53% while VYM returned +25.03%. Year to date, QQQU is up 1.35% versus a gain of 16.53% for VYM.

Risk: Volatility and Drawdowns

QQQU has been the more volatile fund, with annualized monthly volatility of 45.1% compared with 14.6% for VYM. 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 -58.8% for VYM. 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQU charges 0.98% per year while VYM charges 0.04%. On a $10,000 position that is $98 vs $4 annually, a gap of $94 per year that compounds over a long holding period. On income, QQQU currently yields 10.48% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

QQQU and VYM share 0 holdings out of 569 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, QQQU or VYM?

QQQU has an expense ratio of 0.98% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $94 per year of difference.

Which performed better, QQQU or VYM?

Over the past year QQQU returned +18.53% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), QQQU annualized +43.33% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, QQQU or VYM?

QQQU has been the more volatile fund at 45.1% annualized versus 14.6% for VYM. Worst drawdown: QQQU -53.7% vs VYM -58.8%.

Should I hold both QQQU and VYM?

QQQU and VYM have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQU and VYM?

QQQU and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 569 unique securities.

Which pays a higher dividend, QQQU or VYM?

QQQU yields 10.48% while VYM yields 2.86%, so QQQU currently pays the higher dividend yield.

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