BAI vs QQQ
iShares AI Innovation and Tech Active ETF vs Invesco QQQ Trust, Series 1
Which is better, BAI or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. BAI led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.95. BAI is less concentrated, with 41.5% 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 | BAI | QQQ |
|---|---|---|
| Expense Ratio | 0.55% | 0.18%Best |
| AUM | $13.7B | $483.5B |
| Dividend Yield | 1.34% | 0.44% |
| Holdings | 55 | 107 |
| YTD Return | +27.65%Best | +15.21% |
| 1Y Return | +27.36%Best | +19.78% |
| 3Y Return (annualized) | - | +24.58% |
| 5Y Return (annualized) | - | +13.93% |
| Volatility (annualized) | 37.6% | 19.0%Best |
| Max Drawdown | -34.1% | -22.8%Best |
| $10,000 over 1.9 years | $17,542Best | $14,338 |
| Top 10 Weight | 41.5%Best | 46.5% |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Oct 21, 2024 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 1.9 years row, are measured over the window both funds cover: Oct 22, 2024 to Sep 16, 2026 (1.9 years).
BAI 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 1.9 years both funds cover.
BAI vs QQQ Performance
iShares AI Innovation and Tech Active ETF (BAI) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year BAI returned +27.36% while QQQ returned +19.78%. Year to date, BAI is up 27.65% versus a gain of 15.21% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BAI has been the more volatile fund, with annualized monthly volatility of 37.6% compared with 19.0% for QQQ. 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 -34.1% for BAI 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
BAI charges 0.55% per year while QQQ charges 0.18%. On a $10,000 position that is $55 vs $18 annually, a gap of $37 per year that compounds over a long holding period. On income, BAI currently yields 1.34% against 0.44% for QQQ.
Holdings Overlap
55.4% of BAI's money is in holdings QQQ also owns. 46.3% of QQQ's money is in holdings BAI also owns.
The two portfolios partly overlap.
19 positions in common, counted across the 50 positions we hold weights for in BAI and 102 in QQQ, against full books of 55 and 107.
What only one of them owns
Our book lists 77 positions for QQQ that do not appear in our book for BAI (51.3% of the fund), and 18 for BAI that do not appear in QQQ (19.9%).
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 BAI | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp | 5.34% | 8.44% | 3.10% |
| MUMicron Technology, Inc. | 6.37% | 4.43% | 1.94% |
| AMDAdvanced Micro Devices Inc | 4.75% | 3.45% | 1.30% |
| AVGOBroadcom Inc | 4.84% | 3.16% | 1.68% |
| MSFTMicrosoft Corp | 2.14% | 5.76% | 3.62% |
| AMZNAmazon.Com Inc | 2.03% | 4.67% | 2.64% |
| GOOGLAlphabet Inc,class A | 2.71% | 3.36% | 0.65% |
| LRCXLrcx Uw Equity | 4.12% | 1.69% | 2.43% |
| INTCIntel Corporation | 2.54% | 2.23% | 0.31% |
| SPCXSpace Exploration Technologies | 2.93% | 0.91% | 2.02% |
55.4% of BAI is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, BAI or QQQ?
BAI has an expense ratio of 0.55% while QQQ charges 0.18%. QQQ is the cheaper option, by $37 a year on a $10,000 investment.
Which performed better, BAI or QQQ?
Over the past year BAI returned +27.36% vs +19.78% for QQQ, so BAI leads on 1-year performance. Over the longest common window we track (2 years), BAI annualized +34.42% vs +20.88% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BAI or QQQ?
BAI has been the more volatile fund at 37.6% annualized versus 19.0% for QQQ. Worst drawdown: BAI -34.1% vs QQQ -22.8%.
Should I hold both BAI and QQQ?
BAI and QQQ have a monthly-return correlation of 0.95, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between BAI and QQQ?
55.4% of BAI's money is in holdings QQQ also owns. 46.3% of QQQ's is in holdings BAI also owns. They hold 19 positions in common, counted across the 50 positions we hold weights for in BAI and 102 in QQQ.
Which pays a higher dividend, BAI or QQQ?
BAI yields 1.34% while QQQ yields 0.44%, so BAI currently pays the higher dividend yield.
Is QQQ better than BAI?
QQQ has a lower expense ratio. BAI led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.95. BAI is less concentrated, with 41.5% 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.