BITS vs QQQ

BITS vs QQQ
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Quick Verdict

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

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricBITSQQQWinner
Expense Ratio0.65%0.18%
AUM$23M$496.3B
Dividend Yield25.64%0.44%
Holdings5108
YTD Return-17.16%+19.52%
1Y Return-16.72%+26.68%
3Y Return (annualized)+35.61%+26.64%
5Y Return (annualized)-+15.36%
Volatility (annualized)64.3%30.6%
Max Drawdown-83.1%-83.0%
Fund FamilyGlobal X by mirae AssetInvesco (US)
CategoryAlternativeEquity
InceptionNov 15, 2021Mar 10, 1999

BITS vs QQQ Performance

Global X Blockchain & Bitcoin Strategy ETF (BITS) is a ETF from Global X by mirae Asset and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BITS returned -16.72% while QQQ returned +26.68%. Year to date, BITS is down 17.16% versus a gain of 19.52% for QQQ.

Over three years, BITS compounded at +35.61% per year against +26.64% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.14% annualized vs -2.48%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

BITS has been the more volatile fund, with annualized monthly volatility of 64.3% 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 -83.1% for BITS 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BITS charges 0.65% per year while QQQ charges 0.18%. On a $10,000 position that is $65 vs $18 annually, a gap of $47 per year that compounds over a long holding period. On income, BITS currently yields 25.64% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

BITS 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, BITS or QQQ?

BITS has an expense ratio of 0.65% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $47 per year of difference.

Which performed better, BITS or QQQ?

Over the past year BITS returned -16.72% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), BITS annualized -2.48% vs +13.14% for QQQ. Past performance does not guarantee future results.

Which is riskier, BITS or QQQ?

BITS has been the more volatile fund at 64.3% annualized versus 30.6% for QQQ. Worst drawdown: BITS -83.1% vs QQQ -83.0%.

Should I hold both BITS and QQQ?

BITS and QQQ have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BITS and QQQ?

BITS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.

Which pays a higher dividend, BITS or QQQ?

BITS yields 25.64% while QQQ yields 0.44%, so BITS currently pays the higher dividend yield.

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