BOCT vs QQQ

BOCT vs QQQ

Which is better, BOCT or QQQ?

Option Writing against Large Cap Growth.

QQQ has a lower expense ratio. BOCT led over 1Y, QQQ over 3Y, 5Y and the full window. BOCT is less concentrated, with 38.4% of the fund in its ten largest positions against 46.9%.

Lower Fees: QQQHigher Returns: splitLess Concentrated: BOCT

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

MetricBOCTQQQ
Expense Ratio0.79%0.18%Best
AUM$349M$437.3B
Dividend Yield0.00%0.43%
Holdings1,015208
YTD Return+8.70%Best+7.37%
1Y Return+10.81%Best+7.77%
3Y Return (annualized)+14.11%+21.44%Best
5Y Return (annualized)+9.42%+11.19%Best
Volatility (annualized)11.1%Best20.6%
Max Drawdown-24.5%Best-35.1%
$10,000 over 5 years$15,685$16,995Best
Top 10 Weight38.4%Best46.9%
Fund FamilyInnovator ETFs TrustInvesco (US)
CategoryAlternativeEquity
StyleOption WritingLarge Cap Growth
InceptionSep 28, 2018Mar 10, 1999

Volatility and max drawdown are measured over the window both funds cover: Oct 1, 2018 to Nov 6, 2026 (8.1 years).

BOCT 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 covers the 8.1 years both funds cover.

BOCT vs QQQ Performance

Innovator U.S. Equity Buffer ETF - October (BOCT) is an ETF from Innovator ETFs Trust and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year BOCT returned +10.81% while QQQ returned +7.77%. Year to date, BOCT is up 8.70% versus a gain of 7.37% for QQQ.

Over three years, BOCT compounded at +14.11% per year against +21.44% for QQQ; over five years the annualized figures are +9.42% and +11.19% respectively. Across the full 8-year window we track, QQQ has the edge at +17.31% annualized vs +10.16%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 20.6% compared with 11.1% for BOCT. 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 -24.5% for BOCT and -35.1% 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 0.88. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BOCT charges 0.79% per year while QQQ charges 0.18%. On a $10,000 position that is $79 vs $18 annually, a gap of $61 per year that compounds over a long holding period. On income, BOCT currently yields 0.00% against 0.43% for QQQ.

Holdings Overlap

BOCT already in QQQ54.5%
QQQ already in BOCT92.8%

54.5% of BOCT's money is in holdings QQQ also owns. 92.8% of QQQ's money is in holdings BOCT also owns.

Most of QQQ is already inside BOCT. Owning both mostly buys the same companies twice.

86 positions in common, counted across the 496 positions we hold weights for in BOCT and 101 in QQQ, against full books of 1,015 and 208.

What only one of them owns

Our book lists 8 positions for QQQ that do not appear in our book for BOCT (4.4% of the fund), and 410 for BOCT that do not appear in QQQ (44.3%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in BOCTWeight in QQQDifference
NVDANvidia Corp7.96%8.05%0.09%
AAPLApple Inc7.44%7.68%0.24%
MSFTMicrosoft Corp5.89%6.16%0.27%
AMZNAmazon.Com Inc3.70%4.23%0.53%
GOOGLAlphabet Inc3.03%3.15%0.12%
MUMicron Technology, Inc.1.53%4.47%2.94%
METAMeta Platforms Inc2.42%3.37%0.95%
GOOGAlphabet Inc. C2.43%2.93%0.50%
AMDAdvanced Micro Devices Inc1.38%3.90%2.52%
AVGOBroadcom Inc2.45%2.52%0.07%

92.8% of QQQ is already inside BOCT.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

BOCTQQQ

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Frequently Asked Questions

Which is cheaper, BOCT or QQQ?

BOCT has an expense ratio of 0.79% while QQQ charges 0.18%. QQQ is the cheaper option, by $61 a year on a $10,000 investment.

Which performed better, BOCT or QQQ?

Over the past year BOCT returned +10.81% vs +7.77% for QQQ, so BOCT leads on 1-year performance. Over the longest common window we track (8 years), BOCT annualized +10.16% vs +17.31% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, BOCT or QQQ?

QQQ has been the more volatile fund at 20.6% annualized versus 11.1% for BOCT. Worst drawdown: BOCT -24.5% vs QQQ -35.1%.

Should I hold both BOCT and QQQ?

BOCT and QQQ have a monthly-return correlation of 0.88, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between BOCT and QQQ?

92.8% of QQQ's money is in holdings BOCT also owns. 92.8% of QQQ's is in holdings BOCT also owns. They hold 86 positions in common, counted across the 496 positions we hold weights for in BOCT and 101 in QQQ.

Which pays a higher dividend, BOCT or QQQ?

BOCT yields 0.00% while QQQ yields 0.43%, so QQQ currently pays the higher dividend yield.

Is QQQ better than BOCT?

QQQ has a lower expense ratio. BOCT led over 1Y, QQQ over 3Y, 5Y and the full window. BOCT is less concentrated, with 38.4% of the fund in its ten largest positions against 46.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.