BKSE vs QQQ
BNY Mellon US Small Cap Core Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
BKSE has a lower expense ratio. QQQ delivered stronger 1-year returns. BKSE offers more diversification with 605 holdings.
Side-by-Side Comparison
| Metric | BKSE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.18% | |
| AUM | $92M | $496.3B | |
| Dividend Yield | 1.85% | 0.44% | |
| Holdings | 605 | 108 | |
| YTD Return | -60.20% | +16.64% | |
| 1Y Return | -56.18% | +27.27% | |
| 3Y Return (annualized) | -17.57% | +25.96% | |
| 5Y Return (annualized) | -12.50% | +14.54% | |
| Volatility (annualized) | 33.4% | 30.6% | |
| Max Drawdown | -67.3% | -83.0% | |
| Fund Family | BNY Mellon Investment Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 7, 2020 | Mar 10, 1999 |
BKSE vs QQQ Performance
BNY Mellon US Small Cap Core Equity ETF (BKSE) is a ETF from BNY Mellon Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BKSE returned -56.18% while QQQ returned +27.27%. Year to date, BKSE is down 60.20% versus a gain of 16.64% for QQQ.
Over three years, BKSE compounded at -17.57% per year against +25.96% for QQQ; over five years the annualized figures are -12.50% and +14.54% respectively. Across the full 6-year window we track, QQQ has the edge at +13.03% annualized vs -1.82%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BKSE has been the more volatile fund, with annualized monthly volatility of 33.4% 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 -67.3% for BKSE 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BKSE charges 0.04% per year while QQQ charges 0.18%. On a $10,000 position that is $4 vs $18 annually, a gap of $14 per year that compounds over a long holding period. On income, BKSE currently yields 1.85% against 0.44% for QQQ.
Holdings Overlap
BKSE and QQQ share 0 holdings out of 681 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, BKSE or QQQ?
BKSE has an expense ratio of 0.04% while QQQ charges 0.18%. BKSE is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, BKSE or QQQ?
Over the past year BKSE returned -56.18% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), BKSE annualized -1.82% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, BKSE or QQQ?
BKSE has been the more volatile fund at 33.4% annualized versus 30.6% for QQQ. Worst drawdown: BKSE -67.3% vs QQQ -83.0%.
Should I hold both BKSE and QQQ?
BKSE and QQQ have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BKSE and QQQ?
BKSE and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 681 unique securities.
Which pays a higher dividend, BKSE or QQQ?
BKSE yields 1.85% while QQQ yields 0.44%, so BKSE currently pays the higher dividend yield.
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