BBBS vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. BBBS offers more diversification with 960 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: BBBS

Side-by-Side Comparison

MetricBBBSQQQWinner
Expense Ratio0.19%0.18%
AUM$180M$455.8B
Dividend Yield4.56%0.41%
Holdings1,353108
YTD Return+0.63%+17.85%
1Y Return+2.84%+26.45%
3Y Return (annualized)-+26.07%
5Y Return (annualized)-+15.16%
Volatility (annualized)2.1%30.6%
Max Drawdown-1.4%-83.0%
Fund FamilyBondBloxxInvesco (US)
CategoryFixed IncomeEquity
InceptionJan 16, 2024Mar 10, 1999

BBBS vs QQQ Performance

BondBloxx BBB Rated 1-5 Year Corporate Bond ETF (BBBS) is a ETF from BondBloxx and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BBBS returned +2.84% while QQQ returned +26.45%. Year to date, BBBS is up 0.63% versus a gain of 17.85% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 2.1% for BBBS. 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 -1.4% for BBBS 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BBBS charges 0.19% per year while QQQ charges 0.18%. On a $10,000 position that is $19 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, BBBS currently yields 4.56% against 0.41% for QQQ.

Holdings Overlap

0.1%overlap

BBBS and QQQ share 1 holdings out of 1062 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BBBSWeight in QQQDifference
KDP0.08%0.19%0.11%

Frequently Asked Questions

Which is cheaper, BBBS or QQQ?

BBBS has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, BBBS or QQQ?

Over the past year BBBS returned +2.84% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), BBBS annualized +4.81% vs +13.09% for QQQ. Past performance does not guarantee future results.

Which is riskier, BBBS or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 2.1% for BBBS. Worst drawdown: BBBS -1.4% vs QQQ -83.0%.

Should I hold both BBBS and QQQ?

BBBS and QQQ have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BBBS and QQQ?

BBBS and QQQ share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1062 unique securities.

Which pays a higher dividend, BBBS or QQQ?

BBBS yields 4.56% while QQQ yields 0.41%, so BBBS currently pays the higher dividend yield.

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