QQQE vs. USMC

Last updated Jun 4, 2026

QQQE (Direxion NASDAQ-100 Equal Weighted Index Shares) and USMC (Principal U.S. Mega-Cap ETF) are both exchange-traded funds - QQQE is a Nasdaq-100 fund tracking the NASDAQ-100 Equal Weighted Index, while USMC is a Large Cap Growth Equities fund tracking the Nasdaq US Mega Cap Select Leaders Index. Both are passively managed. Over the past 5 years, QQQE returned 10.30%/yr vs 15.40%/yr for USMC. Their correlation of 0.84 suggests significant overlap in exposure. QQQE charges 0.35%/yr vs 0.12%/yr for USMC.

Performance

QQQE vs. USMC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) and Principal U.S. Mega-Cap ETF (USMC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QQQE achieves a 19.12% return, which is significantly higher than USMC's 8.73% return.

QQQE

• 1D: -0.10%
• 1M: 10.46%
• YTD: 19.12%
• 6M: 17.48%
• 1Y: 28.68%
• 3Y*: 18.69%
• 5Y*: 10.30%
• 10Y*: 15.49%

USMC

• 1D: -0.35%
• 1M: 5.52%
• YTD: 8.73%
• 6M: 8.24%
• 1Y: 23.60%
• 3Y*: 21.98%
• 5Y*: 15.40%
• 10Y*: —

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

QQQE vs. USMC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QQQE Direxion NASDAQ-100 Equal Weighted Index Shares	19.12%	14.58%	6.98%	33.76%	-24.47%	17.93%	37.85%	36.43%	-5.40%	3.80%
USMC Principal U.S. Mega-Cap ETF	8.73%	14.99%	29.82%	31.57%	-17.17%	26.30%	16.05%	27.37%	-2.30%	5.48%

Correlation

The correlation between QQQE and USMC is 0.74, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.81
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (All Time) Calculated using the full available price history since Oct 13, 2017	0.84

The correlation between QQQE and USMC shifts across timeframes, from 0.74 (1 year) to 0.85 (5 years), reflecting how their relationship changes across market environments.

QQQE vs. USMC - Sectors Allocation Comparison

Sectors	QQQE	USMC
Technology	45.1%	29.1%
Consumer Cyclical	10.9%	8.4%
Industrials	10.1%	5.6%
Communication Services	9.1%	14.7%
Healthcare	8.6%	8.1%
Consumer Defensive	7.7%	9.6%
Utilities	3.9%	-
Energy	2.0%	4.8%
Financial Services	1.0%	19.6%
Basic Materials	0.9%	-
Real Estate	0.7%	-

Return for Risk

QQQE vs. USMC — Risk / Return Rank

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

QQQE

QQQE Risk / Return Rank: 58
QQQE Sharpe Ratio Rank: 59
QQQE Sortino Ratio Rank: 57
QQQE Omega Ratio Rank: 55
QQQE Calmar Ratio Rank: 61
QQQE Martin Ratio Rank: 59

USMC

USMC Risk / Return Rank: 54
USMC Sharpe Ratio Rank: 58
USMC Sortino Ratio Rank: 59
USMC Omega Ratio Rank: 56
USMC Calmar Ratio Rank: 46
USMC Martin Ratio Rank: 51

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.

QQQE vs. USMC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) and Principal U.S. Mega-Cap ETF (USMC). 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.

	QQQE	USMC	Difference
Sharpe ratio: Return per unit of total volatility	2.04	2.01	+0.03
Sortino ratio: Return per unit of downside risk	2.79	2.84	-0.05
Omega ratio: Gain probability vs. loss probability	1.35	1.35	0.00
Calmar ratio: Return relative to maximum drawdown	3.06	2.30	+0.76
Martin ratio: Return relative to average drawdown	10.57	8.80	+1.77
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QQQE vs. USMC - Sharpe Ratio Comparison

The current QQQE Sharpe Ratio is 2.04, which is comparable to the USMC Sharpe Ratio of 2.01. The chart below compares the historical Sharpe Ratios of QQQE and USMC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	QQQE	USMC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.04	2.01	+0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.51	0.95	-0.44
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.75	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.76	0.84	-0.07

Drawdowns

QQQE vs. USMC - Drawdown Comparison

The maximum QQQE drawdown since its inception was -32.14%, which is greater than USMC's maximum drawdown of -29.97%. Use the drawdown chart below to compare losses from any high point for QQQE and USMC.

Drawdown Indicators

	QQQE	USMC	Difference
Max Drawdown Largest peak-to-trough decline	-32.14%	-29.97%	-2.17%
Max Drawdown (1Y) Largest decline over 1 year	-9.41%	-10.30%	+0.89%
Max Drawdown (3Y) Largest decline over 3 years	-21.38%	-19.12%	-2.26%
Max Drawdown (5Y) Largest decline over 5 years	-32.14%	-24.09%	-8.05%
Max Drawdown (10Y) Largest decline over 10 years	-32.14%	—	—
Current Drawdown Current decline from peak	-0.10%	-0.35%	+0.25%
Average Drawdown Average peak-to-trough decline	-5.17%	-4.40%	-0.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.72%	2.69%	+0.03%

Volatility

QQQE vs. USMC - Volatility Comparison

Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) has a higher volatility of 3.79% compared to Principal U.S. Mega-Cap ETF (USMC) at 2.52%. This indicates that QQQE's price experiences larger fluctuations and is considered to be riskier than USMC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QQQE	USMC	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.79%	2.52%	+1.27%
Volatility (6M) Calculated over the trailing 6-month period	10.64%	8.68%	+1.96%
Volatility (1Y) Calculated over the trailing 1-year period	14.15%	11.81%	+2.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.30%	16.36%	+3.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.72%	18.25%	+2.47%

QQQE vs. USMC - Expense Ratio Comparison

QQQE has a 0.35% expense ratio, which is higher than USMC's 0.12% expense ratio.

Dividends

QQQE vs. USMC - Dividend Comparison

QQQE's dividend yield for the trailing twelve months is around 0.52%, less than USMC's 0.74% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QQQE Direxion NASDAQ-100 Equal Weighted Index Shares	0.52%	0.52%	0.86%	0.79%	0.98%	3.83%	0.54%	0.74%	0.80%	0.65%	1.17%	0.57%
USMC Principal U.S. Mega-Cap ETF	0.74%	0.79%	1.04%	1.35%	1.78%	1.53%	1.55%	2.01%	2.28%	0.24%	0.00%	0.00%

Frequently Asked Questions

Can I hold both QQQE and USMC in my portfolio?

QQQE and USMC have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QQQE or USMC?

QQQE has higher volatility (3.79%) compared to USMC (2.52%). In terms of maximum drawdown, QQQE dropped -32.14% vs USMC's -29.97%.

Which ETF is better, QQQE or USMC?

On 5-year performance, USMC leads with 15.40% vs 10.30% for QQQE. On fees, USMC is cheaper at 0.12% per year. On volatility, USMC has been the lower-risk option at 2.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QQQE or USMC?

Over the 5-year period, USMC has performed better with a 15.40% return vs 10.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QQQE or USMC?

USMC is cheaper with a 0.12% expense ratio, compared with 0.35% for QQQE.

Which ETF pays a higher dividend yield, QQQE or USMC?

USMC has the higher dividend yield at 0.74%, compared with 0.52% for QQQE.

What is the main difference between QQQE and USMC?

QQQE is categorized as Nasdaq-100, while USMC is Large Cap Growth Equities. QQQE tracks NASDAQ-100 Equal Weighted Index, while USMC tracks Nasdaq US Mega Cap Select Leaders Index. They also come from different issuers: Direxion and Principal. Their fees differ too: 0.35% for QQQE and 0.12% for USMC.

Which has better risk-adjusted returns?

QQQE currently has the higher Sharpe Ratio (2.04 vs 2.01), 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.