BIV vs QQQ
Vanguard Intermediate-Term Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
BIV has a lower expense ratio. QQQ delivered stronger 1-year returns. BIV offers more diversification with 2,336 holdings.
Side-by-Side Comparison
| Metric | BIV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.18% | |
| AUM | $28.8B | $496.3B | |
| Dividend Yield | 4.28% | 0.44% | |
| Holdings | 2,336 | 108 | |
| YTD Return | -0.54% | +16.23% | |
| 1Y Return | +1.79% | +26.23% | |
| 3Y Return (annualized) | +5.00% | +25.75% | |
| 5Y Return (annualized) | -0.21% | +14.78% | |
| Volatility (annualized) | 5.7% | 30.6% | |
| Max Drawdown | -20.3% | -83.0% | |
| Fund Family | Vanguard (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Mar 10, 1999 |
BIV vs QQQ Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BIV returned +1.79% while QQQ returned +26.23%. Year to date, BIV is down 0.54% versus a gain of 16.23% for QQQ.
Over three years, BIV compounded at +5.00% per year against +25.75% for QQQ; over five years the annualized figures are -0.21% and +14.78% respectively. Across the full 19-year window we track, QQQ has the edge at +13.02% annualized vs +1.00%. 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 5.7% for BIV. 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 -20.3% for BIV 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIV charges 0.03% per year while QQQ charges 0.18%. On a $10,000 position that is $3 vs $18 annually, a gap of $15 per year that compounds over a long holding period. On income, BIV currently yields 4.28% against 0.44% for QQQ.
Holdings Overlap
BIV and QQQ share 0 holdings out of 384 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, BIV or QQQ?
BIV has an expense ratio of 0.03% while QQQ charges 0.18%. BIV is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, BIV or QQQ?
Over the past year BIV returned +1.79% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), BIV annualized +1.00% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, BIV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs QQQ -83.0%.
Should I hold both BIV and QQQ?
BIV and QQQ have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIV and QQQ?
BIV and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 384 unique securities.
Which pays a higher dividend, BIV or QQQ?
BIV yields 4.28% while QQQ yields 0.44%, so BIV currently pays the higher dividend yield.
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