BALI vs QQQ
iShares US Large Cap Premium Income Active ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. BALI offers more diversification with 201 holdings.
Side-by-Side Comparison
| Metric | BALI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $1.4B | $496.3B | |
| Dividend Yield | 7.87% | 0.44% | |
| Holdings | 201 | 108 | |
| YTD Return | +12.21% | +16.64% | |
| 1Y Return | +19.74% | +27.27% | |
| 3Y Return (annualized) | +20.72% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 10.3% | 30.6% | |
| Max Drawdown | -16.6% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 26, 2023 | Mar 10, 1999 |
BALI vs QQQ Performance
iShares US Large Cap Premium Income Active ETF (BALI) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BALI returned +19.74% while QQQ returned +27.27%. Year to date, BALI is up 12.21% versus a gain of 16.64% for QQQ.
Over three years, BALI compounded at +20.72% per year against +25.96% for QQQ. Across the full 3-year window we track, BALI has the edge at +20.72% annualized vs +13.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 10.3% for BALI. 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 -16.6% for BALI 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BALI charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, BALI currently yields 7.87% against 0.44% for QQQ.
Holdings Overlap
BALI and QQQ share 42 holdings out of 259 unique holdings combined, representing a 46.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BALI or QQQ?
BALI has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, BALI or QQQ?
Over the past year BALI returned +19.74% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), BALI annualized +20.72% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, BALI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.3% for BALI. Worst drawdown: BALI -16.6% vs QQQ -83.0%.
Should I hold both BALI and QQQ?
BALI and QQQ have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BALI and QQQ?
BALI and QQQ share 42 common holdings with a 46.6% weight overlap. Combined, they hold 259 unique securities.
Which pays a higher dividend, BALI or QQQ?
BALI yields 7.87% while QQQ yields 0.44%, so BALI currently pays the higher dividend yield.
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