BME vs QQQ
BlackRock Health Sciences Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. BME delivered stronger 1-year returns. BME offers more diversification with 156 holdings.
Side-by-Side Comparison
| Metric | BME | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.14% | 0.18% | |
| AUM | $595M | $496.3B | |
| Dividend Yield | 7.05% | 0.44% | |
| Holdings | 156 | 108 | |
| YTD Return | +12.08% | +19.52% | |
| 1Y Return | +32.53% | +26.68% | |
| 3Y Return (annualized) | +10.85% | +26.64% | |
| 5Y Return (annualized) | +4.65% | +15.36% | |
| Volatility (annualized) | 17.1% | 30.6% | |
| Max Drawdown | -44.6% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 31, 2005 | Mar 10, 1999 |
BME vs QQQ Performance
BlackRock Health Sciences Trust (BME) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BME returned +32.53% while QQQ returned +26.68%. Year to date, BME is up 12.08% versus a gain of 19.52% for QQQ.
Over three years, BME compounded at +10.85% per year against +26.64% for QQQ; over five years the annualized figures are +4.65% and +15.36% respectively. Across the full 21-year window we track, QQQ has the edge at +13.14% annualized vs +4.45%. 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 17.1% for BME. 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 -44.6% for BME 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BME charges 1.14% per year while QQQ charges 0.18%. On a $10,000 position that is $114 vs $18 annually, a gap of $96 per year that compounds over a long holding period. On income, BME currently yields 7.05% against 0.44% for QQQ.
Holdings Overlap
BME and QQQ share 9 holdings out of 230 unique holdings combined, representing a 3.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BME or QQQ?
BME has an expense ratio of 1.14% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $96 per year of difference.
Which performed better, BME or QQQ?
Over the past year BME returned +32.53% vs +26.68% for QQQ, so BME leads on 1-year performance. Over the longest common window we track (21 years), BME annualized +4.45% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, BME or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.1% for BME. Worst drawdown: BME -44.6% vs QQQ -83.0%.
Should I hold both BME and QQQ?
BME and QQQ have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BME and QQQ?
BME and QQQ share 9 common holdings with a 3.8% weight overlap. Combined, they hold 230 unique securities.
Which pays a higher dividend, BME or QQQ?
BME yields 7.05% while QQQ yields 0.44%, so BME currently pays the higher dividend yield.
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