BGH vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. BGH offers more diversification with 248 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: BGH

Side-by-Side Comparison

MetricBGHQQQWinner
Expense Ratio3.88%0.18%
AUM$298M$455.8B
Dividend Yield11.44%0.41%
Holdings248108
YTD Return+0.58%+19.68%
1Y Return-1.13%+26.75%
3Y Return (annualized)+13.42%+26.25%
5Y Return (annualized)+6.86%+15.39%
Volatility (annualized)15.9%30.6%
Max Drawdown-63.8%-83.0%
Fund FamilyBaringsInvesco (US)
CategoryFixed IncomeEquity
InceptionOct 26, 2012Mar 10, 1999

BGH vs QQQ Performance

Barings Global Short Duration High Yield Fund (BGH) is a ETF from Barings and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BGH returned -1.13% while QQQ returned +26.75%. Year to date, BGH is up 0.58% versus a gain of 19.68% for QQQ.

Over three years, BGH compounded at +13.42% per year against +26.25% for QQQ; over five years the annualized figures are +6.86% and +15.39% respectively. Across the full 14-year window we track, QQQ has the edge at +13.15% annualized vs -0.14%. 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 15.9% for BGH. 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 -63.8% for BGH 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BGH charges 3.88% per year while QQQ charges 0.18%. On a $10,000 position that is $388 vs $18 annually, a gap of $370 per year that compounds over a long holding period. On income, BGH currently yields 11.44% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

BGH and QQQ share 0 holdings out of 210 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, BGH or QQQ?

BGH has an expense ratio of 3.88% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $370 per year of difference.

Which performed better, BGH or QQQ?

Over the past year BGH returned -1.13% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), BGH annualized -0.14% vs +13.15% for QQQ. Past performance does not guarantee future results.

Which is riskier, BGH or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 15.9% for BGH. Worst drawdown: BGH -63.8% vs QQQ -83.0%.

Should I hold both BGH and QQQ?

BGH and QQQ have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BGH and QQQ?

BGH and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 210 unique securities.

Which pays a higher dividend, BGH or QQQ?

BGH yields 11.44% while QQQ yields 0.41%, so BGH currently pays the higher dividend yield.

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