QQQ vs. TMF

Last updated Jun 13, 2026

QQQ (Invesco QQQ ETF) and TMF (Direxion Daily 20+ Year Treasury Bull 3X ETF) are both exchange-traded funds - QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index, while TMF is a Leveraged Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index (300%). Both are passively managed. Over the past 10 years, QQQ returned 21.79%/yr vs -16.87%/yr for TMF. At a correlation of -0.19, they often move in opposite directions. QQQ charges 0.18%/yr vs 1.01%/yr for TMF.

Performance

QQQ vs. TMF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco QQQ ETF (QQQ) and Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QQQ achieves a 17.57% return, which is significantly higher than TMF's -5.18% return. Over the past 10 years, QQQ has outperformed TMF with an annualized return of 21.79%, while TMF has yielded a comparatively lower -16.87% annualized return.

QQQ

• 1D: 0.59%
• 1M: 0.93%
• YTD: 17.57%
• 6M: 17.85%
• 1Y: 35.82%
• 3Y*: 26.43%
• 5Y*: 16.85%
• 10Y*: 21.79%

TMF

• 1D: -0.93%
• 1M: 3.29%
• YTD: -5.18%
• 6M: -5.04%
• 1Y: -4.90%
• 3Y*: -19.82%
• 5Y*: -31.10%
• 10Y*: -16.87%

*Multi-year figures are annualized to reflect compound growth (CAGR)

QQQ vs. TMF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QQQ Invesco QQQ ETF	17.57%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%
TMF Direxion Daily 20+ Year Treasury Bull 3X ETF	-5.18%	-2.94%	-35.95%	-13.01%	-72.60%	-19.80%	39.02%	34.75%	-11.01%	22.72%

Correlation

The correlation between QQQ and TMF is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.17
Correlation (3Y) Calculated over the trailing 3-year period	0.13
Correlation (5Y) Calculated over the trailing 5-year period	0.07
Correlation (10Y) Calculated over the trailing 10-year period	-0.04
Correlation (All Time) Calculated using the full available price history since Apr 16, 2009	-0.19

The correlation between QQQ and TMF shifts across timeframes, from -0.19 (all time) to 0.17 (1 year), reflecting how their relationship changes across market environments.

QQQ vs. TMF - Sectors Allocation Comparison

Sectors	QQQ	TMF
Technology	53.8%	-
Communication Services	15.8%	-
Consumer Cyclical	12.3%	-
Consumer Defensive	7.7%	-
Healthcare	4.2%	-
Industrials	2.8%	-
Utilities	1.4%	-
Basic Materials	1.1%	-
Energy	0.6%	-
Financial Services	0.2%	18.4%
Real Estate	0.1%	-

Return for Risk

QQQ vs. TMF — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

QQQ

QQQ Risk / Return Rank: 71
QQQ Sharpe Ratio Rank: 75
QQQ Sortino Ratio Rank: 70
QQQ Omega Ratio Rank: 73
QQQ Calmar Ratio Rank: 69
QQQ Martin Ratio Rank: 70

TMF

TMF Risk / Return Rank: 8
TMF Sharpe Ratio Rank: 8
TMF Sortino Ratio Rank: 8
TMF Omega Ratio Rank: 8
TMF Calmar Ratio Rank: 8
TMF Martin Ratio Rank: 8

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

QQQ vs. TMF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ ETF (QQQ) and Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	QQQ	TMF	Difference
Sharpe ratio: Return per unit of total volatility	2.09	-0.17	+2.27
Sortino ratio: Return per unit of downside risk	2.73	-0.05	+2.78
Omega ratio: Gain probability vs. loss probability	1.37	0.99	+0.37
Calmar ratio: Return relative to maximum drawdown	3.01	-0.19	+3.19
Martin ratio: Return relative to average drawdown	11.22	-0.41	+11.63

QQQ vs. TMF - Sharpe Ratio Comparison

The current QQQ Sharpe Ratio is 2.09, which is higher than the TMF Sharpe Ratio of -0.17. The chart below compares the historical Sharpe Ratios of QQQ and TMF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

QQQ vs. TMF - Drawdown Comparison

The maximum QQQ drawdown since its inception was -82.97%, smaller than the maximum TMF drawdown of -92.89%. Use the drawdown chart below to compare losses from any high point for QQQ and TMF.

Drawdown Indicators

	QQQ	TMF	Difference
Max Drawdown Largest peak-to-trough decline	-82.97%	-92.89%	+9.92%
Max Drawdown (1Y) Largest decline over 1 year	-11.96%	-26.51%	+14.55%
Max Drawdown (3Y) Largest decline over 3 years	-22.77%	-56.31%	+33.54%
Max Drawdown (5Y) Largest decline over 5 years	-35.12%	-88.81%	+53.69%
Max Drawdown (10Y) Largest decline over 10 years	-35.12%	-92.89%	+57.77%
Current Drawdown Current decline from peak	-3.33%	-92.15%	+88.82%
Average Drawdown Average peak-to-trough decline	-32.75%	-43.70%	+10.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.20%	11.96%	-8.76%

Volatility

QQQ vs. TMF - Volatility Comparison

The current volatility for Invesco QQQ ETF (QQQ) is 7.56%, while Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF) has a volatility of 8.43%. This indicates that QQQ experiences smaller price fluctuations and is considered to be less risky than TMF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QQQ	TMF	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.56%	8.43%	-0.87%
Volatility (6M) Calculated over the trailing 6-month period	13.81%	19.46%	-5.65%
Volatility (1Y) Calculated over the trailing 1-year period	17.19%	28.49%	-11.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.55%	46.72%	-24.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.38%	43.92%	-21.54%

QQQ vs. TMF - Expense Ratio Comparison

QQQ has a 0.18% expense ratio, which is lower than TMF's 1.01% expense ratio.

Dividends

QQQ vs. TMF - Dividend Comparison

QQQ's dividend yield for the trailing twelve months is around 0.39%, less than TMF's 4.11% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QQQ Invesco QQQ ETF	0.39%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%
TMF Direxion Daily 20+ Year Treasury Bull 3X ETF	4.11%	4.06%	4.29%	2.82%	1.62%	0.13%	2.23%	0.94%	1.49%	0.41%	0.00%	0.00%

Frequently Asked Questions

Can I hold both QQQ and TMF in my portfolio?

QQQ and TMF have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QQQ or TMF?

TMF has higher volatility (8.43%) compared to QQQ (7.56%). In terms of maximum drawdown, QQQ dropped -82.97% vs TMF's -92.89%.

Which ETF is better, QQQ or TMF?

On 10-year performance, QQQ leads with 21.79% vs -16.87% for TMF. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 7.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QQQ or TMF?

Over the 10-year period, QQQ has performed better with a 21.79% return vs -16.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QQQ or TMF?

QQQ is cheaper with a 0.18% expense ratio, compared with 1.01% for TMF.

Which ETF pays a higher dividend yield, QQQ or TMF?

TMF has the higher dividend yield at 4.11%, compared with 0.39% for QQQ.

What is the main difference between QQQ and TMF?

QQQ is categorized as Nasdaq-100, while TMF is Leveraged Bonds. QQQ tracks NASDAQ-100 Index, while TMF tracks ICE U.S. Treasury 20+ Year Bond Index (300%). They also come from different issuers: Invesco and Direxion. Their fees differ too: 0.18% for QQQ and 1.01% for TMF.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.09 vs -0.17), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.