BPAY vs QQQ

BPAY vs QQQ

Which is better, BPAY or QQQ?

Large Cap Blend against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. BPAY is less concentrated, with 38.4% of the fund in its ten largest positions against 46.5%.

Lower Fees: QQQHigher Returns: QQQLess Concentrated: BPAY

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

MetricBPAYQQQ
Expense Ratio0.55%0.18%Best
AUM$10M$486.1B
Dividend Yield6.83%0.44%
Holdings42107
YTD Return+2.54%+17.54%Best
1Y Return-9.03%+25.59%Best
3Y Return (annualized)+12.06%+24.63%Best
5Y Return (annualized)-+14.18%
Volatility (annualized)24.1%18.9%Best
Max Drawdown-33.6%-22.8%Best
$10,000 over 4 years$12,384$22,168Best
Top 10 Weight38.4%Best46.5%
Fund FamilyBlackRock, Inc. (US)Invesco (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Growth
InceptionAug 16, 2022Mar 10, 1999

Volatility and max drawdown, and the $10,000 over 4 years row, are measured over the window both funds cover: Aug 18, 2022 to Sep 4, 2026 (4 years).

BPAY 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 4 years both funds cover.

BPAY vs QQQ Performance

iShares FinTech Active ETF (BPAY) is an ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year BPAY returned -9.03% while QQQ returned +25.59%. Year to date, BPAY is up 2.54% versus a gain of 17.54% for QQQ.

Over three years, BPAY compounded at +12.06% per year against +24.63% for QQQ. Across the full 4-year window we track, QQQ has the edge at +22.02% annualized vs +5.49%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

BPAY has been the more volatile fund, with annualized monthly volatility of 24.1% compared with 18.9% for QQQ. 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 -33.6% for BPAY and -22.8% 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 0.59. They move together some of the time, and apart the rest.

Fees and Cost Over Time

BPAY 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, BPAY currently yields 6.83% against 0.44% for QQQ.

Holdings Overlap

BPAY already in QQQ3.0%
QQQ already in BPAY0.4%

3.0% of BPAY's money is in holdings QQQ also owns. 0.4% of QQQ's money is in holdings BPAY also owns.

BPAY and QQQ share little of their money.

1 positions in common, counted across the 40 positions we hold weights for in BPAY and 102 in QQQ, against full books of 42 and 107.

What only one of them owns

Our book lists 95 positions for QQQ that do not appear in our book for BPAY (97.1% of the fund), and 23 for BPAY that do not appear in QQQ (60.7%).

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 BPAYWeight in QQQDifference
MELIMercadolibre Inc2.99%0.43%2.56%

You are not choosing between two funds in isolation.

Whichever of BPAY and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

BPAYQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, BPAY or QQQ?

BPAY has an expense ratio of 0.55% while QQQ charges 0.18%. QQQ is the cheaper option, by $37 a year on a $10,000 investment.

Which performed better, BPAY or QQQ?

Over the past year BPAY returned -9.03% vs +25.59% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), BPAY annualized +5.49% vs +22.02% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, BPAY or QQQ?

BPAY has been the more volatile fund at 24.1% annualized versus 18.9% for QQQ. Worst drawdown: BPAY -33.6% vs QQQ -22.8%.

Should I hold both BPAY and QQQ?

BPAY and QQQ have a monthly-return correlation of 0.59, 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 BPAY and QQQ?

3.0% of BPAY's money is in holdings QQQ also owns. 0.4% of QQQ's is in holdings BPAY also owns. They hold 1 positions in common, counted across the 40 positions we hold weights for in BPAY and 102 in QQQ.

Which pays a higher dividend, BPAY or QQQ?

BPAY yields 6.83% while QQQ yields 0.44%, so BPAY currently pays the higher dividend yield.

Is QQQ better than BPAY?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. BPAY is less concentrated, with 38.4% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.