BNDD vs QQQ
Quadratic Deflation ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | BNDD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.18% | |
| AUM | $21M | $455.8B | |
| Dividend Yield | 3.82% | 0.41% | |
| Holdings | 4 | 108 | |
| YTD Return | +2.61% | +17.46% | |
| 1Y Return | +1.09% | +26.02% | |
| 3Y Return (annualized) | -4.21% | +25.51% | |
| 5Y Return (annualized) | -4.60% | +15.12% | |
| Volatility (annualized) | 11.4% | 30.6% | |
| Max Drawdown | -30.9% | -83.0% | |
| Fund Family | KraneShares | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 20, 2021 | Mar 10, 1999 |
BNDD vs QQQ Performance
Quadratic Deflation ETF (BNDD) is a ETF from KraneShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BNDD returned +1.09% while QQQ returned +26.02%. Year to date, BNDD is up 2.61% versus a gain of 17.46% for QQQ.
Over three years, BNDD compounded at -4.21% per year against +25.51% for QQQ; over five years the annualized figures are -4.60% and +15.12% respectively. Across the full 5-year window we track, QQQ has the edge at +13.08% annualized vs -4.60%. 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 11.4% for BNDD. 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 -30.9% for BNDD 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BNDD charges 1.02% per year while QQQ charges 0.18%. On a $10,000 position that is $102 vs $18 annually, a gap of $84 per year that compounds over a long holding period. On income, BNDD currently yields 3.82% against 0.41% for QQQ.
Holdings Overlap
BNDD and QQQ share 0 holdings out of 104 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, BNDD or QQQ?
BNDD has an expense ratio of 1.02% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $84 per year of difference.
Which performed better, BNDD or QQQ?
Over the past year BNDD returned +1.09% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), BNDD annualized -4.60% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, BNDD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.4% for BNDD. Worst drawdown: BNDD -30.9% vs QQQ -83.0%.
Should I hold both BNDD and QQQ?
BNDD and QQQ have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDD and QQQ?
BNDD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, BNDD or QQQ?
BNDD yields 3.82% while QQQ yields 0.41%, so BNDD currently pays the higher dividend yield.
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