QQQ vs UYG
QQQ vs UYG
Invesco QQQ Trust, Series 1 vs ProShares Ultra Financials
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 | UYG | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.94% | |
| AUM | $455.8B | $827M | |
| Dividend Yield | 0.41% | 12.47% | |
| Holdings | 108 | 89 | |
| YTD Return | +17.27% | +8.29% | |
| 1Y Return | +28.64% | +20.30% | |
| 3Y Return (annualized) | +24.88% | +31.15% | |
| 5Y Return (annualized) | +14.86% | +14.23% | |
| Volatility (annualized) | 30.6% | 41.2% | |
| Max Drawdown | -83.0% | -98.0% | |
| Fund Family | Invesco (US) | ProShares | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Jan 30, 2007 |
QQQ vs UYG Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares Ultra Financials (UYG) is a ETF from ProShares. Over the past year QQQ returned +28.64% while UYG returned +20.30%. Year to date, QQQ is up 17.27% versus a gain of 8.29% for UYG.
Over three years, QQQ compounded at +24.88% per year against +31.15% for UYG; over five years the annualized figures are +14.86% and +14.23% respectively. Across the full 20-year window we track, QQQ has the edge at +13.08% annualized vs +0.26%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
UYG has been the more volatile fund, with annualized monthly volatility of 41.2% 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 -98.0% for UYG. 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while UYG charges 0.94%. On a $10,000 position that is $18 vs $94 annually, a gap of $76 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 12.47% for UYG.
Holdings Overlap
QQQ and UYG share 1 holdings out of 179 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in UYG | Difference |
|---|---|---|---|
| PYPL | 0.19% | 0.30% | 0.11% |
Frequently Asked Questions
Which is cheaper, QQQ or UYG?
QQQ has an expense ratio of 0.18% while UYG charges 0.94%. QQQ is the cheaper option. On a $10,000 investment, that is $76 per year of difference.
Which performed better, QQQ or UYG?
Over the past year QQQ returned +28.64% vs +20.30% for UYG, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.08% vs +0.26% for UYG. Past performance does not guarantee future results.
Which is riskier, QQQ or UYG?
UYG has been the more volatile fund at 41.2% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs UYG -98.0%.
Should I hold both QQQ and UYG?
QQQ and UYG have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and UYG?
QQQ and UYG share 1 common holdings with a 0.2% weight overlap. Combined, they hold 179 unique securities.
Which pays a higher dividend, QQQ or UYG?
QQQ yields 0.41% while UYG yields 12.47%, so UYG currently pays the higher dividend yield.
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