BBH vs QQQ
VanEck Biotech ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. BBH delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | BBH | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $406M | $496.3B | |
| Dividend Yield | 0.46% | 0.44% | |
| Holdings | 26 | 108 | |
| YTD Return | +28.27% | +17.07% | |
| 1Y Return | +47.25% | +26.39% | |
| 3Y Return (annualized) | +15.50% | +26.08% | |
| 5Y Return (annualized) | +3.85% | +15.18% | |
| Volatility (annualized) | 31.2% | 30.6% | |
| Max Drawdown | -72.7% | -83.0% | |
| Fund Family | VanEck | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 20, 2011 | Mar 10, 1999 |
BBH vs QQQ Performance
VanEck Biotech ETF (BBH) is a ETF from VanEck and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BBH returned +47.25% while QQQ returned +26.39%. Year to date, BBH is up 28.27% versus a gain of 17.07% for QQQ.
Over three years, BBH compounded at +15.50% per year against +26.08% for QQQ; over five years the annualized figures are +3.85% and +15.18% respectively. Across the full 27-year window we track, BBH has the edge at +14.75% annualized vs +13.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BBH has been the more volatile fund, with annualized monthly volatility of 31.2% 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 -72.7% for BBH 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BBH 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, BBH currently yields 0.46% against 0.44% for QQQ.
Holdings Overlap
BBH and QQQ share 5 holdings out of 121 unique holdings combined, representing a 2.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BBH or QQQ?
BBH 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, BBH or QQQ?
Over the past year BBH returned +47.25% vs +26.39% for QQQ, so BBH leads on 1-year performance. Over the longest common window we track (27 years), BBH annualized +14.75% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, BBH or QQQ?
BBH has been the more volatile fund at 31.2% annualized versus 30.6% for QQQ. Worst drawdown: BBH -72.7% vs QQQ -83.0%.
Should I hold both BBH and QQQ?
BBH and QQQ have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BBH and QQQ?
BBH and QQQ share 5 common holdings with a 2.7% weight overlap. Combined, they hold 121 unique securities.
Which pays a higher dividend, BBH or QQQ?
BBH yields 0.46% while QQQ yields 0.44%, so BBH currently pays the higher dividend yield.
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