BITX vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricBITXQQQWinner
Expense Ratio2.38%0.18%
AUM$927M$455.8B
Dividend Yield37.27%0.41%
Holdings3108
YTD Return-59.36%+17.46%
1Y Return-79.85%+26.02%
3Y Return (annualized)+5.51%+25.51%
5Y Return (annualized)-+15.12%
Volatility (annualized)105.3%30.6%
Max Drawdown-83.5%-83.0%
Fund FamilyVolatility Shares, LLCInvesco (US)
CategoryAlternativeEquity
InceptionJun 27, 2023Mar 10, 1999

BITX vs QQQ Performance

2x Bitcoin Strategy ETF (BITX) is a ETF from Volatility Shares, LLC and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BITX returned -79.85% while QQQ returned +26.02%. Year to date, BITX is down 59.36% versus a gain of 17.46% for QQQ.

Over three years, BITX compounded at +5.51% per year against +25.51% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.08% annualized vs +0.51%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

BITX has been the more volatile fund, with annualized monthly volatility of 105.3% 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 -83.5% for BITX 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BITX charges 2.38% per year while QQQ charges 0.18%. On a $10,000 position that is $238 vs $18 annually, a gap of $220 per year that compounds over a long holding period. On income, BITX currently yields 37.27% against 0.41% for QQQ.

Frequently Asked Questions

Which is cheaper, BITX or QQQ?

BITX has an expense ratio of 2.38% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $220 per year of difference.

Which performed better, BITX or QQQ?

Over the past year BITX returned -79.85% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), BITX annualized +0.51% vs +13.08% for QQQ. Past performance does not guarantee future results.

Which is riskier, BITX or QQQ?

BITX has been the more volatile fund at 105.3% annualized versus 30.6% for QQQ. Worst drawdown: BITX -83.5% vs QQQ -83.0%.

Should I hold both BITX and QQQ?

BITX and QQQ have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, BITX or QQQ?

BITX yields 37.27% while QQQ yields 0.41%, so BITX currently pays the higher dividend yield.

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