BMED vs QQQ
iShares Health Innovation Active ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. BMED delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | BMED | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.18% | |
| AUM | $13M | $496.3B | |
| Dividend Yield | 0.26% | 0.44% | |
| Holdings | 56 | 108 | |
| YTD Return | +12.55% | +16.23% | |
| 1Y Return | +31.40% | +26.23% | |
| 3Y Return (annualized) | +13.24% | +25.75% | |
| 5Y Return (annualized) | +2.92% | +14.78% | |
| Volatility (annualized) | 17.3% | 30.6% | |
| Max Drawdown | -36.4% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 29, 2020 | Mar 10, 1999 |
BMED vs QQQ Performance
iShares Health Innovation Active ETF (BMED) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BMED returned +31.40% while QQQ returned +26.23%. Year to date, BMED is up 12.55% versus a gain of 16.23% for QQQ.
Over three years, BMED compounded at +13.24% per year against +25.75% for QQQ; over five years the annualized figures are +2.92% and +14.78% respectively. Across the full 6-year window we track, QQQ has the edge at +13.02% annualized vs +5.09%. 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 17.3% for BMED. 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 -36.4% for BMED 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BMED charges 0.55% per year while QQQ charges 0.18%. On a $10,000 position that is $55 vs $18 annually, a gap of $37 per year that compounds over a long holding period. On income, BMED currently yields 0.26% against 0.44% for QQQ.
Holdings Overlap
BMED and QQQ share 5 holdings out of 150 unique holdings combined, representing a 2.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BMED or QQQ?
BMED has an expense ratio of 0.55% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, BMED or QQQ?
Over the past year BMED returned +31.40% vs +26.23% for QQQ, so BMED leads on 1-year performance. Over the longest common window we track (6 years), BMED annualized +5.09% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, BMED or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.3% for BMED. Worst drawdown: BMED -36.4% vs QQQ -83.0%.
Should I hold both BMED and QQQ?
BMED and QQQ have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BMED and QQQ?
BMED and QQQ share 5 common holdings with a 2.5% weight overlap. Combined, they hold 150 unique securities.
Which pays a higher dividend, BMED or QQQ?
BMED yields 0.26% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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