QQQ vs USD

Quick Verdict

QQQ has a lower expense ratio. USD delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: USDMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQUSDWinner
Expense Ratio0.18%0.95%
AUM$455.8B$2.5B
Dividend Yield0.41%0.29%
Holdings10851
YTD Return+14.45%+49.14%
1Y Return+24.70%+87.43%
3Y Return (annualized)+24.19%+95.47%
5Y Return (annualized)+14.49%+55.20%
Volatility (annualized)30.6%54.4%
Max Drawdown-83.0%-89.3%
Fund FamilyInvesco (US)ProShares
CategoryEquityAlternative
InceptionMar 10, 1999Jan 30, 2007

QQQ vs USD Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares Ultra Semiconductors (USD) is a ETF from ProShares. Over the past year QQQ returned +24.70% while USD returned +87.43%. Year to date, QQQ is up 14.45% versus a gain of 49.14% for USD.

Over three years, QQQ compounded at +24.19% per year against +95.47% for USD; over five years the annualized figures are +14.49% and +55.20% respectively. Across the full 20-year window we track, USD has the edge at +27.35% annualized vs +12.98%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

USD has been the more volatile fund, with annualized monthly volatility of 54.4% 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 -89.3% for USD. 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 0.86. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QQQ charges 0.18% per year while USD charges 0.95%. On a $10,000 position that is $18 vs $95 annually, a gap of $77 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.29% for USD.

Holdings Overlap

23.6%overlap

QQQ and USD share 17 holdings out of 123 unique holdings combined, representing a 23.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in QQQWeight in USDDifference
NVDA7.88%12.15%4.27%
MU4.67%2.85%1.82%
AVGO2.91%4.54%1.63%
AMDProProPro
INTCProProPro
AMATProProPro
LRCXProProPro
KLACProProPro
TXNProProPro
MRVLProProPro
See all 10 holdings QQQ shares with USD
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, QQQ or USD?

QQQ has an expense ratio of 0.18% while USD charges 0.95%. QQQ is the cheaper option. On a $10,000 investment, that is $77 per year of difference.

Which performed better, QQQ or USD?

Over the past year QQQ returned +24.70% vs +87.43% for USD, so USD leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +12.98% vs +27.35% for USD. Past performance does not guarantee future results.

Which is riskier, QQQ or USD?

USD has been the more volatile fund at 54.4% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs USD -89.3%.

Should I hold both QQQ and USD?

QQQ and USD have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and USD?

QQQ and USD share 17 common holdings with a 23.6% weight overlap. Combined, they hold 123 unique securities.

Which pays a higher dividend, QQQ or USD?

QQQ yields 0.41% while USD yields 0.29%, so QQQ currently pays the higher dividend yield.

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