LABU vs QQQ
Direxion Daily S&P Biotech Bull 3X ETF vs Invesco QQQ Trust, Series 1
Which is better, LABU or QQQ?
Multi Alternative against Large Cap Growth.
QQQ has a lower expense ratio. LABU led over 1Y and 3Y, QQQ over 5Y and the full window. LABU is less concentrated, with 32.6% of the fund in its ten largest positions against 46.7%.
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 | LABU | QQQ |
|---|---|---|
| Expense Ratio | 0.93% | 0.18%Best |
| AUM | $562M | $506.1B |
| Dividend Yield | 0.34% | 0.42% |
| Holdings | 325 | 321 |
| YTD Return | +33.35%Best | +19.30% |
| 1Y Return | +96.63%Best | +22.47% |
| 3Y Return (annualized) | +47.83%Best | +26.18% |
| 5Y Return (annualized) | -28.40% | +15.42%Best |
| Volatility (annualized) | 85.1% | 18.8%Best |
| Max Drawdown | - | -35.1% |
| $10,000 over 5 years | $1,882 | $20,484Best |
| Top 10 Weight | 32.6%Best | 46.7% |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) |
| Category | Alternative | Equity |
| Style | Multi Alternative | Large Cap Growth |
| Inception | May 28, 2015 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: May 28, 2015 to Oct 14, 2026 (11.4 years).
LABU vs QQQ 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 11.4 years both funds cover.
LABU vs QQQ Performance
Direxion Daily S&P Biotech Bull 3X ETF (LABU) is an ETF from Direxion Shares ETF Trust and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year LABU returned +96.63% while QQQ returned +22.47%. Year to date, LABU is up 33.35% versus a gain of 19.30% for QQQ.
Over three years, LABU compounded at +47.83% per year against +26.18% for QQQ; over five years the annualized figures are -28.40% and +15.42% respectively. Across the full 11-year window we track, QQQ has the edge at +18.36% annualized vs -20.93%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LABU has been the more volatile fund, with annualized monthly volatility of 85.1% compared with 18.8% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The two funds' monthly returns correlate at 0.58. They move together some of the time, and apart the rest.
Fees and Cost Over Time
LABU charges 0.93% per year while QQQ charges 0.18%. On a $10,000 position that is $93 vs $18 annually, a gap of $75 per year that compounds over a long holding period. On income, LABU currently yields 0.34% against 0.42% for QQQ.
Holdings Overlap
5.5% of LABU's money is in holdings QQQ also owns. 2.7% of QQQ's money is in holdings LABU also owns.
LABU and QQQ share little of their money.
5 positions in common, counted across the 161 positions we hold weights for in LABU and 101 in QQQ, against full books of 325 and 321.
What only one of them owns
Our book lists 88 positions for QQQ that do not appear in our book for LABU (93.5% of the fund), and 149 for LABU that do not appear in QQQ (91.0%).
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.
You are not choosing between two funds in isolation.
Whichever of LABU and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, LABU or QQQ?
LABU has an expense ratio of 0.93% while QQQ charges 0.18%. QQQ is the cheaper option, by $75 a year on a $10,000 investment.
Which performed better, LABU or QQQ?
Over the past year LABU returned +96.63% vs +22.47% for QQQ, so LABU leads on 1-year performance. Over the longest common window we track (11 years), LABU annualized -20.93% vs +18.36% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, LABU or QQQ?
LABU has been the more volatile fund at 85.1% annualized versus 18.8% for QQQ.
Should I hold both LABU and QQQ?
LABU and QQQ have a monthly-return correlation of 0.58, 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 LABU and QQQ?
5.5% of LABU's money is in holdings QQQ also owns. 2.7% of QQQ's is in holdings LABU also owns. They hold 5 positions in common, counted across the 161 positions we hold weights for in LABU and 101 in QQQ.
Which pays a higher dividend, LABU or QQQ?
LABU yields 0.34% while QQQ yields 0.42%, so QQQ currently pays the higher dividend yield.
Is QQQ better than LABU?
QQQ has a lower expense ratio. LABU led over 1Y and 3Y, QQQ over 5Y and the full window. LABU is less concentrated, with 32.6% of the fund in its ten largest positions against 46.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.