BGR vs QQQ

BGR vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. BGR delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: BGRMore Diversified: QQQ

Side-by-Side Comparison

MetricBGRQQQWinner
Expense Ratio1.11%0.18%
AUM$473M$496.3B
Dividend Yield6.42%0.44%
Holdings30108
YTD Return+30.69%+17.07%
1Y Return+40.81%+26.39%
3Y Return (annualized)+19.58%+26.08%
5Y Return (annualized)+23.84%+15.18%
Volatility (annualized)25.6%30.6%
Max Drawdown-87.7%-83.0%
Fund FamilyBlackRock, Inc. (US)Invesco (US)
CategoryEquityEquity
InceptionDec 23, 2004Mar 10, 1999

BGR vs QQQ Performance

BlackRock Energy and Resources Trust (BGR) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BGR returned +40.81% while QQQ returned +26.39%. Year to date, BGR is up 30.69% versus a gain of 17.07% for QQQ.

Over three years, BGR compounded at +19.58% per year against +26.08% for QQQ; over five years the annualized figures are +23.84% and +15.18% respectively. Across the full 22-year window we track, QQQ has the edge at +13.05% annualized vs -0.05%. 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 25.6% for BGR. 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 -87.7% for BGR 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BGR charges 1.11% per year while QQQ charges 0.18%. On a $10,000 position that is $111 vs $18 annually, a gap of $93 per year that compounds over a long holding period. On income, BGR currently yields 6.42% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

BGR and QQQ share 0 holdings out of 132 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, BGR or QQQ?

BGR has an expense ratio of 1.11% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $93 per year of difference.

Which performed better, BGR or QQQ?

Over the past year BGR returned +40.81% vs +26.39% for QQQ, so BGR leads on 1-year performance. Over the longest common window we track (22 years), BGR annualized -0.05% vs +13.05% for QQQ. Past performance does not guarantee future results.

Which is riskier, BGR or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 25.6% for BGR. Worst drawdown: BGR -87.7% vs QQQ -83.0%.

Should I hold both BGR and QQQ?

BGR and QQQ have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BGR and QQQ?

BGR and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 132 unique securities.

Which pays a higher dividend, BGR or QQQ?

BGR yields 6.42% while QQQ yields 0.44%, so BGR currently pays the higher dividend yield.

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