BSTP vs QQQ
Innovator Buffer Step Up Strategy ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | BSTP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.89% | 0.18% | |
| AUM | $60M | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 6 | 108 | |
| YTD Return | +7.63% | +16.23% | |
| 1Y Return | +13.10% | +26.23% | |
| 3Y Return (annualized) | +14.14% | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 11.0% | 30.6% | |
| Max Drawdown | -16.7% | -83.0% | |
| Fund Family | Innovator ETFs Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Mar 7, 2022 | Mar 10, 1999 |
BSTP vs QQQ Performance
Innovator Buffer Step Up Strategy ETF (BSTP) is a ETF from Innovator ETFs Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BSTP returned +13.10% while QQQ returned +26.23%. Year to date, BSTP is up 7.63% versus a gain of 16.23% for QQQ.
Over three years, BSTP compounded at +14.14% per year against +25.75% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.02% annualized vs +10.79%. 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 11.0% for BSTP. 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 -16.7% for BSTP 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
BSTP charges 0.89% per year while QQQ charges 0.18%. On a $10,000 position that is $89 vs $18 annually, a gap of $71 per year that compounds over a long holding period. On income, BSTP currently yields 0.00% against 0.44% for QQQ.
Frequently Asked Questions
Which is cheaper, BSTP or QQQ?
BSTP has an expense ratio of 0.89% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, BSTP or QQQ?
Over the past year BSTP returned +13.10% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), BSTP annualized +10.79% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, BSTP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.0% for BSTP. Worst drawdown: BSTP -16.7% vs QQQ -83.0%.
Should I hold both BSTP and QQQ?
BSTP and QQQ have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
Which pays a higher dividend, BSTP or QQQ?
BSTP yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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