BSMC vs QQQ
Brandes US Small-Mid Cap Value ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. BSMC delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | BSMC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.71% | 0.18% | |
| AUM | $172M | $455.8B | |
| Dividend Yield | 0.93% | 0.41% | |
| Holdings | 68 | 108 | |
| YTD Return | +16.78% | +17.46% | |
| 1Y Return | +29.65% | +26.02% | |
| 3Y Return (annualized) | - | +25.51% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 13.3% | 30.6% | |
| Max Drawdown | -19.1% | -83.0% | |
| Fund Family | Brandes Investment Partners | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 3, 2023 | Mar 10, 1999 |
BSMC vs QQQ Performance
Brandes US Small-Mid Cap Value ETF (BSMC) is a ETF from Brandes Investment Partners and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BSMC returned +29.65% while QQQ returned +26.02%. Year to date, BSMC is up 16.78% versus a gain of 17.46% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 13.3% for BSMC. 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 -19.1% for BSMC 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BSMC charges 0.71% per year while QQQ charges 0.18%. On a $10,000 position that is $71 vs $18 annually, a gap of $53 per year that compounds over a long holding period. On income, BSMC currently yields 0.93% against 0.41% for QQQ.
Holdings Overlap
BSMC and QQQ share 0 holdings out of 173 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, BSMC or QQQ?
BSMC has an expense ratio of 0.71% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $53 per year of difference.
Which performed better, BSMC or QQQ?
Over the past year BSMC returned +29.65% vs +26.02% for QQQ, so BSMC leads on 1-year performance. Over the longest common window we track (3 years), BSMC annualized +18.48% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, BSMC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.3% for BSMC. Worst drawdown: BSMC -19.1% vs QQQ -83.0%.
Should I hold both BSMC and QQQ?
BSMC and QQQ have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSMC and QQQ?
BSMC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 173 unique securities.
Which pays a higher dividend, BSMC or QQQ?
BSMC yields 0.93% while QQQ yields 0.41%, so BSMC currently pays the higher dividend yield.
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