BCHP vs QQQ
Principal Focused Blue Chip ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | BCHP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.18% | |
| AUM | $244M | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 25 | 108 | |
| YTD Return | +4.60% | +19.52% | |
| 1Y Return | +2.97% | +26.68% | |
| 3Y Return (annualized) | +16.11% | +26.64% | |
| 5Y Return (annualized) | - | +15.36% | |
| Volatility (annualized) | 15.6% | 30.6% | |
| Max Drawdown | -18.6% | -83.0% | |
| Fund Family | Principal Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 12, 2023 | Mar 10, 1999 |
BCHP vs QQQ Performance
Principal Focused Blue Chip ETF (BCHP) is a ETF from Principal Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BCHP returned +2.97% while QQQ returned +26.68%. Year to date, BCHP is up 4.60% versus a gain of 19.52% for QQQ.
Over three years, BCHP compounded at +16.11% per year against +26.64% for QQQ. Across the full 3-year window we track, BCHP has the edge at +15.50% annualized vs +13.14%. 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 15.6% for BCHP. 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 -18.6% for BCHP 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BCHP charges 0.58% per year while QQQ charges 0.18%. On a $10,000 position that is $58 vs $18 annually, a gap of $40 per year that compounds over a long holding period. On income, BCHP currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
BCHP and QQQ share 9 holdings out of 116 unique holdings combined, representing a 30.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BCHP or QQQ?
BCHP has an expense ratio of 0.58% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, BCHP or QQQ?
Over the past year BCHP returned +2.97% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), BCHP annualized +15.50% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, BCHP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.6% for BCHP. Worst drawdown: BCHP -18.6% vs QQQ -83.0%.
Should I hold both BCHP and QQQ?
BCHP and QQQ have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BCHP and QQQ?
BCHP and QQQ share 9 common holdings with a 30.1% weight overlap. Combined, they hold 116 unique securities.
Which pays a higher dividend, BCHP or QQQ?
BCHP yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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