BAFE vs QQQ
Brown Advisory Flexible Equity ETF vs Invesco QQQ Trust, Series 1
Which is better, BAFE or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. BAFE is less concentrated, with 42.7% of the fund in its ten largest positions against 46.5%.
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 | BAFE | QQQ |
|---|---|---|
| Expense Ratio | 0.54% | 0.18%Best |
| AUM | $1.7B | $483.5B |
| Dividend Yield | 0.28% | 0.44% |
| Holdings | 46 | 107 |
| YTD Return | +7.67% | +17.21%Best |
| 1Y Return | +8.86% | +22.10%Best |
| 3Y Return (annualized) | - | +25.27% |
| 5Y Return (annualized) | - | +14.60% |
| Volatility (annualized) | 13.5%Best | 19.1% |
| Max Drawdown | -18.4%Best | -22.8% |
| $10,000 over 1.8 years | $11,755 | $14,384Best |
| Top 10 Weight | 42.7%Best | 46.5% |
| Fund Family | Brown Advisory | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Nov 18, 2024 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 1.8 years row, are measured over the window both funds cover: Nov 18, 2024 to Sep 17, 2026 (1.8 years).
BAFE 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 1.8 years both funds cover.
BAFE vs QQQ Performance
Brown Advisory Flexible Equity ETF (BAFE) is an ETF from Brown Advisory and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year BAFE returned +8.86% while QQQ returned +22.10%. Year to date, BAFE is up 7.67% versus a gain of 17.21% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.1% compared with 13.5% for BAFE. 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 -18.4% for BAFE and -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BAFE charges 0.54% per year while QQQ charges 0.18%. On a $10,000 position that is $54 vs $18 annually, a gap of $36 per year that compounds over a long holding period. On income, BAFE currently yields 0.28% against 0.44% for QQQ.
Holdings Overlap
37.9% of BAFE's money is in holdings QQQ also owns. 40.0% of QQQ's money is in holdings BAFE also owns.
The two portfolios partly overlap.
15 positions in common, counted across the 44 positions we hold weights for in BAFE and 102 in QQQ, against full books of 46 and 107.
What only one of them owns
Our book lists 81 positions for QQQ that do not appear in our book for BAFE (57.5% of the fund), and 23 for BAFE that do not appear in QQQ (45.6%).
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.
Top Shared Holdings
| Stock | Weight in BAFE | Weight in QQQ | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 6.36% | 5.76% | 0.60% |
| NVDANvidia Corp | 3.28% | 8.44% | 5.16% |
| AMZNAmazon.Com Inc | 4.52% | 4.67% | 0.15% |
| AAPLApple, Inc | 1.86% | 7.27% | 5.41% |
| GOOGLAlphabet Inc,class A | 3.69% | 3.36% | 0.33% |
| GOOGAlphabet Inc | 3.52% | 3.13% | 0.39% |
| METAMeta Platforms Inc | 3.69% | 2.78% | 0.91% |
| KLACKla Corp | 1.94% | 1.11% | 0.83% |
| BKNGBooking Holdings, Inc. | 2.03% | 0.70% | 1.33% |
| ADIAnalog Devices, Inc. | 1.74% | 0.81% | 0.93% |
40.0% of QQQ is already inside BAFE.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BAFE or QQQ?
BAFE has an expense ratio of 0.54% while QQQ charges 0.18%. QQQ is the cheaper option, by $36 a year on a $10,000 investment.
Which performed better, BAFE or QQQ?
Over the past year BAFE returned +8.86% vs +22.10% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), BAFE annualized +9.40% vs +22.38% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BAFE or QQQ?
QQQ has been the more volatile fund at 19.1% annualized versus 13.5% for BAFE. Worst drawdown: BAFE -18.4% vs QQQ -22.8%.
Should I hold both BAFE and QQQ?
BAFE and QQQ have a monthly-return correlation of 0.76, 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 BAFE and QQQ?
40.0% of QQQ's money is in holdings BAFE also owns. 40.0% of QQQ's is in holdings BAFE also owns. They hold 15 positions in common, counted across the 44 positions we hold weights for in BAFE and 102 in QQQ.
Which pays a higher dividend, BAFE or QQQ?
BAFE yields 0.28% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
Is QQQ better than BAFE?
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. BAFE is less concentrated, with 42.7% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.