BDJ vs QQQ
Blackrock Enhanced Equity Dividend Trust 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 103 holdings.
Side-by-Side Comparison
| Metric | BDJ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.84% | 0.18% | |
| AUM | $1.8B | $455.8B | |
| Dividend Yield | 8.39% | 0.41% | |
| Holdings | 307 | 108 | |
| YTD Return | +10.35% | +18.31% | |
| 1Y Return | +21.65% | +25.37% | |
| 3Y Return (annualized) | +16.34% | +25.79% | |
| 5Y Return (annualized) | +9.15% | +15.20% | |
| Volatility (annualized) | 17.5% | 30.6% | |
| Max Drawdown | -67.3% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Aug 26, 2005 | Mar 10, 1999 |
BDJ vs QQQ Performance
Blackrock Enhanced Equity Dividend Trust (BDJ) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BDJ returned +21.65% while QQQ returned +25.37%. Year to date, BDJ is up 10.35% versus a gain of 18.31% for QQQ.
Over three years, BDJ compounded at +16.34% per year against +25.79% for QQQ; over five years the annualized figures are +9.15% and +15.20% respectively. Across the full 21-year window we track, QQQ has the edge at +13.10% annualized vs +0.45%. 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 17.5% for BDJ. 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 -67.3% for BDJ 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BDJ charges 0.84% per year while QQQ charges 0.18%. On a $10,000 position that is $84 vs $18 annually, a gap of $66 per year that compounds over a long holding period. On income, BDJ currently yields 8.39% against 0.41% for QQQ.
Holdings Overlap
BDJ and QQQ share 14 holdings out of 174 unique holdings combined, representing a 14.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BDJ or QQQ?
BDJ has an expense ratio of 0.84% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, BDJ or QQQ?
Over the past year BDJ returned +21.65% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), BDJ annualized +0.45% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, BDJ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.5% for BDJ. Worst drawdown: BDJ -67.3% vs QQQ -83.0%.
Should I hold both BDJ and QQQ?
BDJ and QQQ have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BDJ and QQQ?
BDJ and QQQ share 14 common holdings with a 14.3% weight overlap. Combined, they hold 174 unique securities.
Which pays a higher dividend, BDJ or QQQ?
BDJ yields 8.39% while QQQ yields 0.41%, so BDJ currently pays the higher dividend yield.
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