BITO vs QQQ
ProShares Bitcoin 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 | BITO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.18% | |
| AUM | $1.4B | $455.8B | |
| Dividend Yield | 75.49% | 0.41% | |
| Holdings | 5 | 108 | |
| YTD Return | -30.77% | +17.46% | |
| 1Y Return | -48.76% | +26.02% | |
| 3Y Return (annualized) | +21.50% | +25.51% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 56.1% | 30.6% | |
| Max Drawdown | -77.9% | -83.0% | |
| Fund Family | ProShares | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Oct 18, 2021 | Mar 10, 1999 |
BITO vs QQQ Performance
ProShares Bitcoin ETF (BITO) is a ETF from ProShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BITO returned -48.76% while QQQ returned +26.02%. Year to date, BITO is down 30.77% versus a gain of 17.46% for QQQ.
Over three years, BITO compounded at +21.50% per year against +25.51% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.08% annualized vs -5.52%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BITO has been the more volatile fund, with annualized monthly volatility of 56.1% compared with 30.6% for QQQ. 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 -77.9% for BITO 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BITO charges 0.95% per year while QQQ charges 0.18%. On a $10,000 position that is $95 vs $18 annually, a gap of $77 per year that compounds over a long holding period. On income, BITO currently yields 75.49% against 0.41% for QQQ.
Holdings Overlap
BITO and QQQ share 0 holdings out of 104 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, BITO or QQQ?
BITO has an expense ratio of 0.95% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, BITO or QQQ?
Over the past year BITO returned -48.76% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), BITO annualized -5.52% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, BITO or QQQ?
BITO has been the more volatile fund at 56.1% annualized versus 30.6% for QQQ. Worst drawdown: BITO -77.9% vs QQQ -83.0%.
Should I hold both BITO and QQQ?
BITO and QQQ have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BITO and QQQ?
BITO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, BITO or QQQ?
BITO yields 75.49% while QQQ yields 0.41%, so BITO currently pays the higher dividend yield.
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