NUGT vs. QQQ
Compare and contrast key facts about Direxion Daily Gold Miners Bull 2X Shares (NUGT) and Invesco QQQ (QQQ).
NUGT and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. NUGT is a passively managed fund by Direxion that tracks the performance of the NYSE Arca Gold Miners Index (300%). It was launched on Apr 1, 2020. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both NUGT and QQQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: NUGT or QQQ.
Key characteristics
| NUGT | QQQ | |
|---|---|---|
| YTD Return | 20.36% | 26.02% |
| 1Y Return | 56.94% | 36.73% |
| 3Y Return (Ann) | -10.14% | 9.97% |
| 5Y Return (Ann) | -20.44% | 21.44% |
| 10Y Return (Ann) | -22.57% | 18.42% |
| Sharpe Ratio | 0.84 | 2.28 |
| Sortino Ratio | 1.45 | 2.98 |
| Omega Ratio | 1.18 | 1.41 |
| Calmar Ratio | 0.53 | 2.94 |
| Martin Ratio | 3.55 | 10.71 |
| Ulcer Index | 14.98% | 3.72% |
| Daily Std Dev | 63.31% | 17.35% |
| Max Drawdown | -99.97% | -82.98% |
| Current Drawdown | -99.95% | -0.06% |
Correlation
The correlation between NUGT and QQQ is 0.16, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
NUGT vs. QQQ - Performance Comparison
In the year-to-date period, NUGT achieves a 20.36% return, which is significantly lower than QQQ's 26.02% return. Over the past 10 years, NUGT has underperformed QQQ with an annualized return of -22.57%, while QQQ has yielded a comparatively higher 18.42% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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NUGT vs. QQQ - Expense Ratio Comparison
NUGT has a 1.23% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
NUGT vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Gold Miners Bull 2X Shares (NUGT) and Invesco QQQ (QQQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
NUGT vs. QQQ - Dividend Comparison
NUGT's dividend yield for the trailing twelve months is around 1.72%, more than QQQ's 0.59% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
NUGT Direxion Daily Gold Miners Bull 2X Shares | 1.72% | 1.66% | 0.70% | 0.00% | 0.00% | 0.63% | 0.57% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
QQQ Invesco QQQ | 0.59% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.02% |
Drawdowns
NUGT vs. QQQ - Drawdown Comparison
The maximum NUGT drawdown since its inception was -99.97%, which is greater than QQQ's maximum drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for NUGT and QQQ. For additional features, visit the drawdowns tool.
Volatility
NUGT vs. QQQ - Volatility Comparison
Direxion Daily Gold Miners Bull 2X Shares (NUGT) has a higher volatility of 21.02% compared to Invesco QQQ (QQQ) at 5.18%. This indicates that NUGT's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.