BSMU vs QQQ

BSMU vs QQQ
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Quick Verdict

QQQ delivered stronger 1-year returns. BSMU offers more diversification with 1,709 holdings.

Lower Fees: TiedHigher Returns: QQQMore Diversified: BSMU

Side-by-Side Comparison

MetricBSMUQQQWinner
Expense Ratio0.18%0.18%
AUM$276M$496.3B
Dividend Yield2.81%0.44%
Holdings1,709108
YTD Return+0.35%+16.64%
1Y Return+3.17%+27.27%
3Y Return (annualized)+3.22%+25.96%
5Y Return (annualized)-0.81%+14.54%
Volatility (annualized)7.2%30.6%
Max Drawdown-19.5%-83.0%
Fund FamilyInvesco (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionSep 16, 2020Mar 10, 1999

BSMU vs QQQ Performance

Invesco BulletShares 2030 Municipal Bond ETF (BSMU) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BSMU returned +3.17% while QQQ returned +27.27%. Year to date, BSMU is up 0.35% versus a gain of 16.64% for QQQ.

Over three years, BSMU compounded at +3.22% per year against +25.96% for QQQ; over five years the annualized figures are -0.81% and +14.54% respectively. Across the full 6-year window we track, QQQ has the edge at +13.03% annualized vs +0.20%. 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 7.2% for BSMU. 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 -19.5% for BSMU 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BSMU charges 0.18% per year while QQQ charges 0.18%. On a $10,000 position that is $18 vs $18 annually. On income, BSMU currently yields 2.81% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

BSMU and QQQ share 0 holdings out of 561 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, BSMU or QQQ?

BSMU 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, BSMU or QQQ?

Over the past year BSMU returned +3.17% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), BSMU annualized +0.20% vs +13.03% for QQQ. Past performance does not guarantee future results.

Which is riskier, BSMU or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 7.2% for BSMU. Worst drawdown: BSMU -19.5% vs QQQ -83.0%.

Should I hold both BSMU and QQQ?

BSMU and QQQ have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BSMU and QQQ?

BSMU and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 561 unique securities.

Which pays a higher dividend, BSMU or QQQ?

BSMU yields 2.81% while QQQ yields 0.44%, so BSMU currently pays the higher dividend yield.

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