BAI vs QQQ
iShares AI Innovation and Tech Active ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. BAI delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | BAI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.18% | |
| AUM | $14.4B | $496.3B | |
| Dividend Yield | 1.41% | 0.44% | |
| Holdings | 59 | 108 | |
| YTD Return | +31.61% | +16.23% | |
| 1Y Return | +50.00% | +26.23% | |
| 3Y Return (annualized) | - | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 38.4% | 30.6% | |
| Max Drawdown | -34.1% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2024 | Mar 10, 1999 |
BAI vs QQQ Performance
iShares AI Innovation and Tech Active ETF (BAI) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BAI returned +50.00% while QQQ returned +26.23%. Year to date, BAI is up 31.61% versus a gain of 16.23% for QQQ.
Risk: Volatility and Drawdowns
BAI has been the more volatile fund, with annualized monthly volatility of 38.4% compared with 30.6% 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 -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
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 1.41% against 0.44% for QQQ.
Holdings Overlap
BAI and QQQ share 19 holdings out of 130 unique holdings combined, representing a 34.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $37 per year of difference.
Which performed better, BAI or QQQ?
Over the past year BAI returned +50.00% vs +26.23% for QQQ, so BAI leads on 1-year performance. Over the longest common window we track (2 years), BAI annualized +38.33% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, BAI or QQQ?
BAI has been the more volatile fund at 38.4% annualized versus 30.6% for QQQ. Worst drawdown: BAI -34.1% vs QQQ -83.0%.
Should I hold both BAI and QQQ?
BAI and QQQ have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between BAI and QQQ?
BAI and QQQ share 19 common holdings with a 34.6% weight overlap. Combined, they hold 130 unique securities.
Which pays a higher dividend, BAI or QQQ?
BAI yields 1.41% while QQQ yields 0.44%, so BAI currently pays the higher dividend yield.
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