BSMY vs QQQ

BSMY vs QQQ
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Quick Verdict

QQQ delivered stronger 1-year returns. BSMY offers more diversification with 1,925 holdings.

Lower Fees: TiedHigher Returns: QQQMore Diversified: BSMY

Side-by-Side Comparison

MetricBSMYQQQWinner
Expense Ratio0.18%0.18%
AUM$140M$496.3B
Dividend Yield3.62%0.44%
Holdings1,925108
YTD Return-0.27%+16.64%
1Y Return+5.49%+27.27%
3Y Return (annualized)-+25.96%
5Y Return (annualized)-+14.54%
Volatility (annualized)5.8%30.6%
Max Drawdown-6.8%-83.0%
Fund FamilyInvesco (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionSep 11, 2024Mar 10, 1999

BSMY vs QQQ Performance

Invesco BulletShares 2034 Municipal Bond ETF (BSMY) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BSMY returned +5.49% while QQQ returned +27.27%. Year to date, BSMY is down 0.27% versus a gain of 16.64% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 5.8% for BSMY. 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 -6.8% for BSMY 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BSMY charges 0.18% per year while QQQ charges 0.18%. On a $10,000 position that is $18 vs $18 annually. On income, BSMY currently yields 3.62% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

BSMY and QQQ share 0 holdings out of 649 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, BSMY or QQQ?

BSMY 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, BSMY or QQQ?

Over the past year BSMY returned +5.49% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), BSMY annualized +0.93% vs +13.03% for QQQ. Past performance does not guarantee future results.

Which is riskier, BSMY or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 5.8% for BSMY. Worst drawdown: BSMY -6.8% vs QQQ -83.0%.

Should I hold both BSMY and QQQ?

BSMY and QQQ have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BSMY and QQQ?

BSMY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 649 unique securities.

Which pays a higher dividend, BSMY or QQQ?

BSMY yields 3.62% while QQQ yields 0.44%, so BSMY currently pays the higher dividend yield.

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