BITQ vs QQQ
Bitwise Crypto Industry Innovators 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 | BITQ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.18% | |
| AUM | $396M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 30 | 108 | |
| YTD Return | +7.06% | +18.31% | |
| 1Y Return | +15.37% | +25.37% | |
| 3Y Return (annualized) | +39.46% | +25.79% | |
| 5Y Return (annualized) | -1.48% | +15.20% | |
| Volatility (annualized) | 70.8% | 30.6% | |
| Max Drawdown | -90.3% | -83.0% | |
| Fund Family | Bitwise | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | May 11, 2021 | Mar 10, 1999 |
BITQ vs QQQ Performance
Bitwise Crypto Industry Innovators ETF (BITQ) is a ETF from Bitwise and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BITQ returned +15.37% while QQQ returned +25.37%. Year to date, BITQ is up 7.06% versus a gain of 18.31% for QQQ.
Over three years, BITQ compounded at +39.46% per year against +25.79% for QQQ; over five years the annualized figures are -1.48% and +15.20% respectively. Across the full 5-year window we track, QQQ has the edge at +13.10% annualized vs +0.55%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BITQ has been the more volatile fund, with annualized monthly volatility of 70.8% 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 -90.3% for BITQ 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BITQ charges 0.85% per year while QQQ charges 0.18%. On a $10,000 position that is $85 vs $18 annually, a gap of $67 per year that compounds over a long holding period. On income, BITQ currently yields 0.00% against 0.41% for QQQ.
Holdings Overlap
BITQ and QQQ share 1 holdings out of 132 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BITQ | Weight in QQQ | Difference |
|---|---|---|---|
| MSTR | 8.92% | 0.13% | 8.79% |
Frequently Asked Questions
Which is cheaper, BITQ or QQQ?
BITQ has an expense ratio of 0.85% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, BITQ or QQQ?
Over the past year BITQ returned +15.37% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), BITQ annualized +0.55% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, BITQ or QQQ?
BITQ has been the more volatile fund at 70.8% annualized versus 30.6% for QQQ. Worst drawdown: BITQ -90.3% vs QQQ -83.0%.
Should I hold both BITQ and QQQ?
BITQ and QQQ have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BITQ and QQQ?
BITQ and QQQ share 1 common holdings with a 0.1% weight overlap. Combined, they hold 132 unique securities.
Which pays a higher dividend, BITQ or QQQ?
BITQ yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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