BFIX vs QQQ
Build Bond Innovation 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 103 holdings.
Side-by-Side Comparison
| Metric | BFIX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.18% | |
| AUM | $14M | $455.8B | |
| Dividend Yield | 3.88% | 0.41% | |
| Holdings | 116 | 108 | |
| YTD Return | +0.69% | +18.20% | |
| 1Y Return | +2.92% | +27.63% | |
| 3Y Return (annualized) | +7.29% | +25.54% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 3.7% | 30.6% | |
| Max Drawdown | -8.0% | -83.0% | |
| Fund Family | BUILD FUNDS TRUST | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 9, 2022 | Mar 10, 1999 |
BFIX vs QQQ Performance
Build Bond Innovation ETF (BFIX) is a ETF from BUILD FUNDS TRUST and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BFIX returned +2.92% while QQQ returned +27.63%. Year to date, BFIX is up 0.69% versus a gain of 18.20% for QQQ.
Over three years, BFIX compounded at +7.29% per year against +25.54% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.11% annualized vs +3.74%. 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 3.7% for BFIX. 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 -8.0% for BFIX 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BFIX charges 0.45% per year while QQQ charges 0.18%. On a $10,000 position that is $45 vs $18 annually, a gap of $27 per year that compounds over a long holding period. On income, BFIX currently yields 3.88% against 0.41% for QQQ.
Holdings Overlap
BFIX and QQQ share 0 holdings out of 186 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, BFIX or QQQ?
BFIX has an expense ratio of 0.45% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, BFIX or QQQ?
Over the past year BFIX returned +2.92% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), BFIX annualized +3.74% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, BFIX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.7% for BFIX. Worst drawdown: BFIX -8.0% vs QQQ -83.0%.
Should I hold both BFIX and QQQ?
BFIX and QQQ have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BFIX and QQQ?
BFIX and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 186 unique securities.
Which pays a higher dividend, BFIX or QQQ?
BFIX yields 3.88% while QQQ yields 0.41%, so BFIX currently pays the higher dividend yield.
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