BSMR vs QQQ

BSMR vs QQQ
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Quick Verdict

QQQ delivered stronger 1-year returns. BSMR offers more diversification with 2,527 holdings.

Lower Fees: TiedHigher Returns: QQQMore Diversified: BSMR

Side-by-Side Comparison

MetricBSMRQQQWinner
Expense Ratio0.18%0.18%
AUM$349M$496.3B
Dividend Yield2.71%0.44%
Holdings2,527108
YTD Return+1.50%+16.23%
1Y Return+2.88%+26.23%
3Y Return (annualized)+3.21%+25.75%
5Y Return (annualized)+0.46%+14.78%
Volatility (annualized)5.0%30.6%
Max Drawdown-13.6%-83.0%
Fund FamilyInvesco (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionSep 25, 2019Mar 10, 1999

BSMR vs QQQ Performance

Invesco BulletShares 2027 Municipal Bond ETF (BSMR) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BSMR returned +2.88% while QQQ returned +26.23%. Year to date, BSMR is up 1.50% versus a gain of 16.23% for QQQ.

Over three years, BSMR compounded at +3.21% per year against +25.75% for QQQ; over five years the annualized figures are +0.46% and +14.78% respectively. Across the full 7-year window we track, QQQ has the edge at +13.02% annualized vs +0.96%. 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 5.0% for BSMR. 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 -13.6% for BSMR 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BSMR charges 0.18% per year while QQQ charges 0.18%. On a $10,000 position that is $18 vs $18 annually. On income, BSMR currently yields 2.71% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

BSMR and QQQ share 0 holdings out of 655 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, BSMR or QQQ?

BSMR has an expense ratio of 0.18% while QQQ charges 0.18%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, BSMR or QQQ?

Over the past year BSMR returned +2.88% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), BSMR annualized +0.96% vs +13.02% for QQQ. Past performance does not guarantee future results.

Which is riskier, BSMR or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 5.0% for BSMR. Worst drawdown: BSMR -13.6% vs QQQ -83.0%.

Should I hold both BSMR and QQQ?

BSMR and QQQ have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BSMR and QQQ?

BSMR and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 655 unique securities.

Which pays a higher dividend, BSMR or QQQ?

BSMR yields 2.71% while QQQ yields 0.44%, so BSMR currently pays the higher dividend yield.

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