Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricBFIXQQQWinner
Expense Ratio0.45%0.18%
AUM$14M$455.8B
Dividend Yield3.88%0.41%
Holdings116108
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 FamilyBUILD FUNDS TRUSTInvesco (US)
CategoryFixed IncomeEquity
InceptionFeb 9, 2022Mar 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

0.0%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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