BLW vs QQQ
BlackRock Limited Duration Income Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. BLW offers more diversification with 2,073 holdings.
Side-by-Side Comparison
| Metric | BLW | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 4.48% | 0.18% | |
| AUM | $520M | $496.3B | |
| Dividend Yield | 10.33% | 0.44% | |
| Holdings | 2,073 | 108 | |
| YTD Return | -0.75% | +16.23% | |
| 1Y Return | -0.51% | +26.23% | |
| 3Y Return (annualized) | +9.24% | +25.75% | |
| 5Y Return (annualized) | +3.48% | +14.78% | |
| Volatility (annualized) | 12.1% | 30.6% | |
| Max Drawdown | -53.5% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 31, 2003 | Mar 10, 1999 |
BLW vs QQQ Performance
BlackRock Limited Duration Income Trust (BLW) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BLW returned -0.51% while QQQ returned +26.23%. Year to date, BLW is down 0.75% versus a gain of 16.23% for QQQ.
Over three years, BLW compounded at +9.24% per year against +25.75% for QQQ; over five years the annualized figures are +3.48% and +14.78% respectively. Across the full 23-year window we track, QQQ has the edge at +13.02% annualized vs +0.21%. 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 12.1% for BLW. 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 -53.5% for BLW 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
BLW charges 4.48% per year while QQQ charges 0.18%. On a $10,000 position that is $448 vs $18 annually, a gap of $430 per year that compounds over a long holding period. On income, BLW currently yields 10.33% against 0.44% for QQQ.
Holdings Overlap
BLW and QQQ share 0 holdings out of 1099 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, BLW or QQQ?
BLW has an expense ratio of 4.48% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $430 per year of difference.
Which performed better, BLW or QQQ?
Over the past year BLW returned -0.51% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), BLW annualized +0.21% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, BLW or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.1% for BLW. Worst drawdown: BLW -53.5% vs QQQ -83.0%.
Should I hold both BLW and QQQ?
BLW 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 BLW and QQQ?
BLW and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1099 unique securities.
Which pays a higher dividend, BLW or QQQ?
BLW yields 10.33% while QQQ yields 0.44%, so BLW currently pays the higher dividend yield.
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