BBN vs QQQ
BlackRock Taxable Municipal Bond Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. BBN offers more diversification with 202 holdings.
Side-by-Side Comparison
| Metric | BBN | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.07% | 0.18% | |
| AUM | $1.0B | $496.3B | |
| Dividend Yield | 7.16% | 0.44% | |
| Holdings | 202 | 108 | |
| YTD Return | +1.47% | +16.23% | |
| 1Y Return | +5.43% | +26.23% | |
| 3Y Return (annualized) | +7.48% | +25.75% | |
| 5Y Return (annualized) | -3.24% | +14.78% | |
| Volatility (annualized) | 12.8% | 30.6% | |
| Max Drawdown | -38.4% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Aug 27, 2010 | Mar 10, 1999 |
BBN vs QQQ Performance
BlackRock Taxable Municipal Bond Trust (BBN) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BBN returned +5.43% while QQQ returned +26.23%. Year to date, BBN is up 1.47% versus a gain of 16.23% for QQQ.
Over three years, BBN compounded at +7.48% per year against +25.75% for QQQ; over five years the annualized figures are -3.24% and +14.78% respectively. Across the full 16-year window we track, QQQ has the edge at +13.02% annualized vs +0.90%. 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 12.8% for BBN. 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 -38.4% for BBN 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
BBN charges 1.07% per year while QQQ charges 0.18%. On a $10,000 position that is $107 vs $18 annually, a gap of $89 per year that compounds over a long holding period. On income, BBN currently yields 7.16% against 0.44% for QQQ.
Holdings Overlap
BBN and QQQ share 0 holdings out of 193 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BBN or QQQ?
BBN has an expense ratio of 1.07% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $89 per year of difference.
Which performed better, BBN or QQQ?
Over the past year BBN returned +5.43% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), BBN annualized +0.90% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, BBN or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.8% for BBN. Worst drawdown: BBN -38.4% vs QQQ -83.0%.
Should I hold both BBN and QQQ?
BBN 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 BBN and QQQ?
BBN and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 193 unique securities.
Which pays a higher dividend, BBN or QQQ?
BBN yields 7.16% while QQQ yields 0.44%, so BBN currently pays the higher dividend yield.
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