BSMS vs QQQ

Quick Verdict

QQQ delivered stronger 1-year returns. BSMS offers more diversification with 621 holdings.

Lower Fees: TiedHigher Returns: QQQMore Diversified: BSMS

Side-by-Side Comparison

MetricBSMSQQQWinner
Expense Ratio0.18%0.18%
AUM$310M$455.8B
Dividend Yield2.77%0.41%
Holdings2,109108
YTD Return+1.34%+19.68%
1Y Return+3.24%+26.75%
3Y Return (annualized)+3.11%+26.25%
5Y Return (annualized)+0.02%+15.39%
Volatility (annualized)5.4%30.6%
Max Drawdown-15.0%-83.0%
Fund FamilyInvesco (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionSep 25, 2019Mar 10, 1999

BSMS vs QQQ Performance

Invesco BulletShares 2028 Municipal Bond ETF (BSMS) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BSMS returned +3.24% while QQQ returned +26.75%. Year to date, BSMS is up 1.34% versus a gain of 19.68% for QQQ.

Over three years, BSMS compounded at +3.11% per year against +26.25% for QQQ; over five years the annualized figures are +0.02% and +15.39% respectively. Across the full 7-year window we track, QQQ has the edge at +13.15% annualized vs +0.89%. 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 5.4% for BSMS. 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 -15.0% for BSMS 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BSMS charges 0.18% per year while QQQ charges 0.18%. On a $10,000 position that is $18 vs $18 annually. On income, BSMS currently yields 2.77% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

BSMS and QQQ share 0 holdings out of 724 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, BSMS or QQQ?

BSMS 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, BSMS or QQQ?

Over the past year BSMS returned +3.24% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), BSMS annualized +0.89% vs +13.15% for QQQ. Past performance does not guarantee future results.

Which is riskier, BSMS or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 5.4% for BSMS. Worst drawdown: BSMS -15.0% vs QQQ -83.0%.

Should I hold both BSMS and QQQ?

BSMS and QQQ have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BSMS and QQQ?

BSMS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 724 unique securities.

Which pays a higher dividend, BSMS or QQQ?

BSMS yields 2.77% while QQQ yields 0.41%, so BSMS currently pays the higher dividend yield.

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