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 42.0% of the fund in its ten largest positions against 47.2%.
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 | $14.4B | $498.6B |
| Dividend Yield | 1.34% | 0.42% |
| Holdings | 55 | 321 |
| YTD Return | +38.50%Best | +22.09% |
| 1Y Return | +34.67%Best | +24.51% |
| 3Y Return (annualized) | - | +27.61% |
| 5Y Return (annualized) | - | +16.57% |
| Volatility (annualized) | 36.8% | 18.4%Best |
| Max Drawdown | -34.1% | -22.8%Best |
| $10,000 over 2 years | $19,213Best | $15,287 |
| Top 10 Weight | 42.0%Best | 47.2% |
| 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 2 years row, are measured over the window both funds cover: Oct 22, 2024 to Oct 12, 2026 (2 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 2 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 +34.67% while QQQ returned +24.51%. Year to date, BAI is up 38.50% versus a gain of 22.09% 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 36.8% compared with 18.4% 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 0.42% for QQQ.
Holdings Overlap
54.4% of BAI's money is in holdings QQQ also owns. 46.6% of QQQ's money is in holdings BAI also owns.
The two portfolios partly overlap.
18 positions in common, counted across the 50 positions we hold weights for in BAI and 102 in QQQ, against full books of 55 and 321.
What only one of them owns
Our book lists 78 positions for QQQ that do not appear in our book for BAI (51.2% of the fund), and 18 for BAI that do not appear in QQQ (19.6%).
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 BAI | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp | 5.30% | 8.45% | 3.15% |
| MUMicron Technology, Inc. | 6.46% | 4.85% | 1.61% |
| AMDAdvanced Micro Devices Inc | 4.87% | 3.71% | 1.16% |
| MSFTMicrosoft Corp | 2.13% | 5.88% | 3.75% |
| AVGOBroadcom Inc | 4.75% | 2.74% | 2.01% |
| AMZNAmazon.Com Inc | 2.05% | 4.41% | 2.36% |
| LRCXLrcx Uw Equity | 4.05% | 1.64% | 2.41% |
| GOOGLAlphabet Inc,class A | 2.49% | 3.15% | 0.66% |
| INTCIntel Corporation | 2.90% | 2.28% | 0.62% |
| SPCXSpace Exploration Technologies | 3.06% | 1.28% | 1.78% |
54.4% 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.
Free for up to 10 holdings. No account needed.
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 +34.67% vs +24.51% for QQQ, so BAI leads on 1-year performance. Over the longest common window we track (2 years), BAI annualized +38.61% vs +23.64% 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 36.8% annualized versus 18.4% 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?
54.4% of BAI's money is in holdings QQQ also owns. 46.6% of QQQ's is in holdings BAI also owns. They hold 18 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 0.42%, 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 42.0% of the fund in its ten largest positions against 47.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.