BND vs QQQ
Vanguard Total Bond Market ETF vs Invesco QQQ Trust, Series 1
Which is better, BND or QQQ?
Intermediate Term Bond against Large Cap Growth.
BND has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BND | QQQ |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.18% |
| AUM | $160.9B | $483.5B |
| Dividend Yield | 4.04% | 0.44% |
| Holdings | 17,437 | 107 |
| YTD Return | -1.20% | +16.87%Best |
| 1Y Return | -0.74% | +22.98%Best |
| 3Y Return (annualized) | +3.99% | +24.98%Best |
| 5Y Return (annualized) | -0.55% | +14.39%Best |
| Volatility (annualized) | 4.6%Best | 18.8% |
| Max Drawdown | -19.6%Best | -53.5% |
| $10,000 over 5 years | $9,728 | $19,586Best |
| Fund Family | Vanguard (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | Intermediate Term Bond | Large Cap Growth |
| Inception | Apr 3, 2007 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Apr 10, 2007 to Sep 11, 2026 (19.4 years).
BND vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
BND vs QQQ Performance
Vanguard Total Bond Market ETF (BND) is an ETF from Vanguard (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year BND returned -0.74% while QQQ returned +22.98%. Year to date, BND is down 1.20% versus a gain of 16.87% for QQQ.
Over three years, BND compounded at +3.99% per year against +24.98% for QQQ; over five years the annualized figures are -0.55% and +14.39% respectively. Across the full 19-year window we track, QQQ has the edge at +15.54% annualized vs +0.64%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 4.6% for BND. 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 -19.6% for BND and -53.5% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.25. They move largely independently of each other.
Fees and Cost Over Time
BND 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, BND currently yields 4.04% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 1,182 holdings in BND and 102 in QQQ, totalling 12.6% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 1,182 positions we hold weights for in BND and 102 in QQQ, against full books of 17,437 and 107.
You are not choosing between two funds in isolation.
Whichever of BND and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BND or QQQ?
BND has an expense ratio of 0.03% while QQQ charges 0.18%. BND is the cheaper option, by $15 a year on a $10,000 investment.
Which performed better, BND or QQQ?
Over the past year BND returned -0.74% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), BND annualized +0.64% vs +15.54% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BND or QQQ?
QQQ has been the more volatile fund at 18.8% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs QQQ -53.5%.
Should I hold both BND and QQQ?
BND and QQQ have a monthly-return correlation of 0.25, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BND or QQQ?
BND yields 4.04% while QQQ yields 0.44%, so BND currently pays the higher dividend yield.
Is QQQ better than BND?
BND has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.