BILS vs QQQ

Quick Verdict

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

Lower Fees: BILSHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricBILSQQQWinner
Expense Ratio0.14%0.18%
AUM$3.9B$455.8B
Dividend Yield3.80%0.41%
Holdings25108
YTD Return+1.80%+19.68%
1Y Return+3.46%+26.75%
3Y Return (annualized)+4.46%+26.25%
5Y Return (annualized)+3.39%+15.39%
Volatility (annualized)0.7%30.6%
Max Drawdown-0.4%-83.0%
Fund FamilyState Street Investment ManagementInvesco (US)
CategoryFixed IncomeEquity
InceptionSep 24, 2020Mar 10, 1999

BILS vs QQQ Performance

State Street SPDR Bloomberg 3-12 Month T-Bill ETF (BILS) is a ETF from State Street Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BILS returned +3.46% while QQQ returned +26.75%. Year to date, BILS is up 1.80% versus a gain of 19.68% for QQQ.

Over three years, BILS compounded at +4.46% per year against +26.25% for QQQ; over five years the annualized figures are +3.39% and +15.39% respectively. Across the full 6-year window we track, QQQ has the edge at +13.15% annualized vs +2.86%. 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 0.7% for BILS. 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 -0.4% for BILS 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 0.12. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BILS charges 0.14% per year while QQQ charges 0.18%. On a $10,000 position that is $14 vs $18 annually, a gap of $4 per year that compounds over a long holding period. On income, BILS currently yields 3.80% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

BILS and QQQ share 0 holdings out of 105 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, BILS or QQQ?

BILS has an expense ratio of 0.14% while QQQ charges 0.18%. BILS is the cheaper option. On a $10,000 investment, that is $4 per year of difference.

Which performed better, BILS or QQQ?

Over the past year BILS returned +3.46% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), BILS annualized +2.86% vs +13.15% for QQQ. Past performance does not guarantee future results.

Which is riskier, BILS or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 0.7% for BILS. Worst drawdown: BILS -0.4% vs QQQ -83.0%.

Should I hold both BILS and QQQ?

BILS and QQQ have a monthly-return correlation of 0.12, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BILS and QQQ?

BILS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.

Which pays a higher dividend, BILS or QQQ?

BILS yields 3.80% while QQQ yields 0.41%, so BILS currently pays the higher dividend yield.

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