BKLN vs QQQ
Invesco Senior Loan ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. BKLN offers more diversification with 167 holdings.
Side-by-Side Comparison
| Metric | BKLN | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.18% | |
| AUM | $6.8B | $496.3B | |
| Dividend Yield | 6.51% | 0.44% | |
| Holdings | 167 | 108 | |
| YTD Return | +1.59% | +16.23% | |
| 1Y Return | +4.69% | +26.23% | |
| 3Y Return (annualized) | +7.02% | +25.75% | |
| 5Y Return (annualized) | +5.52% | +14.78% | |
| Volatility (annualized) | 4.8% | 30.6% | |
| Max Drawdown | -32.2% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 3, 2011 | Mar 10, 1999 |
BKLN vs QQQ Performance
Invesco Senior Loan ETF (BKLN) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BKLN returned +4.69% while QQQ returned +26.23%. Year to date, BKLN is up 1.59% versus a gain of 16.23% for QQQ.
Over three years, BKLN compounded at +7.02% per year against +25.75% for QQQ; over five years the annualized figures are +5.52% and +14.78% respectively. Across the full 16-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 4.8% for BKLN. 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 -32.2% for BKLN 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BKLN 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, BKLN currently yields 6.51% against 0.44% for QQQ.
Holdings Overlap
BKLN and QQQ share 0 holdings out of 212 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, BKLN or QQQ?
BKLN 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, BKLN or QQQ?
Over the past year BKLN returned +4.69% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), BKLN annualized +1.00% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, BKLN or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.8% for BKLN. Worst drawdown: BKLN -32.2% vs QQQ -83.0%.
Should I hold both BKLN and QQQ?
BKLN and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BKLN and QQQ?
BKLN and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 212 unique securities.
Which pays a higher dividend, BKLN or QQQ?
BKLN yields 6.51% while QQQ yields 0.44%, so BKLN currently pays the higher dividend yield.
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