BLV vs QQQ
Vanguard Long-Term Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
BLV has a lower expense ratio. QQQ delivered stronger 1-year returns. BLV offers more diversification with 2765 holdings.
Side-by-Side Comparison
| Metric | BLV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.18% | |
| AUM | $6.0B | $455.8B | |
| Dividend Yield | 4.72% | 0.41% | |
| Holdings | 2,941 | 108 | |
| YTD Return | -2.19% | +19.68% | |
| 1Y Return | -0.62% | +26.75% | |
| 3Y Return (annualized) | +2.19% | +26.25% | |
| 5Y Return (annualized) | -4.97% | +15.39% | |
| Volatility (annualized) | 11.0% | 30.6% | |
| Max Drawdown | -40.7% | -83.0% | |
| Fund Family | Vanguard (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Mar 10, 1999 |
BLV vs QQQ Performance
Vanguard Long-Term Bond ETF (BLV) is a ETF from Vanguard (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BLV returned -0.62% while QQQ returned +26.75%. Year to date, BLV is down 2.19% versus a gain of 19.68% for QQQ.
Over three years, BLV compounded at +2.19% per year against +26.25% for QQQ; over five years the annualized figures are -4.97% and +15.39% respectively. Across the full 19-year window we track, QQQ has the edge at +13.15% annualized vs +0.54%. 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 11.0% for BLV. 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 -40.7% for BLV 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BLV 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, BLV currently yields 4.72% against 0.41% for QQQ.
Holdings Overlap
BLV and QQQ share 1 holdings out of 2867 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BLV | Weight in QQQ | Difference |
|---|---|---|---|
| LRCX | 0.01% | 1.82% | 1.81% |
Frequently Asked Questions
Which is cheaper, BLV or QQQ?
BLV has an expense ratio of 0.03% while QQQ charges 0.18%. BLV is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, BLV or QQQ?
Over the past year BLV returned -0.62% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), BLV annualized +0.54% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, BLV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.0% for BLV. Worst drawdown: BLV -40.7% vs QQQ -83.0%.
Should I hold both BLV and QQQ?
BLV and QQQ have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BLV and QQQ?
BLV and QQQ share 1 common holdings with a 0.0% weight overlap. Combined, they hold 2867 unique securities.
Which pays a higher dividend, BLV or QQQ?
BLV yields 4.72% while QQQ yields 0.41%, so BLV currently pays the higher dividend yield.
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