BSTZ vs QQQ
BlackRock Science and Technology Term Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. BSTZ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | BSTZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.05% | 0.18% | |
| AUM | $2.3B | $496.3B | |
| Dividend Yield | 7.94% | 0.44% | |
| Holdings | 75 | 108 | |
| YTD Return | +38.92% | +16.64% | |
| 1Y Return | +63.71% | +27.27% | |
| 3Y Return (annualized) | +34.58% | +25.96% | |
| 5Y Return (annualized) | +5.58% | +14.54% | |
| Volatility (annualized) | 28.8% | 30.6% | |
| Max Drawdown | -59.3% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 26, 2019 | Mar 10, 1999 |
BSTZ vs QQQ Performance
BlackRock Science and Technology Term Trust (BSTZ) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BSTZ returned +63.71% while QQQ returned +27.27%. Year to date, BSTZ is up 38.92% versus a gain of 16.64% for QQQ.
Over three years, BSTZ compounded at +34.58% per year against +25.96% for QQQ; over five years the annualized figures are +5.58% and +14.54% respectively. Across the full 7-year window we track, BSTZ has the edge at +15.00% annualized vs +13.03%. 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 28.8% for BSTZ. 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 -59.3% for BSTZ 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BSTZ charges 1.05% per year while QQQ charges 0.18%. On a $10,000 position that is $105 vs $18 annually, a gap of $87 per year that compounds over a long holding period. On income, BSTZ currently yields 7.94% against 0.44% for QQQ.
Holdings Overlap
BSTZ and QQQ share 14 holdings out of 143 unique holdings combined, representing a 16.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BSTZ or QQQ?
BSTZ has an expense ratio of 1.05% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $87 per year of difference.
Which performed better, BSTZ or QQQ?
Over the past year BSTZ returned +63.71% vs +27.27% for QQQ, so BSTZ leads on 1-year performance. Over the longest common window we track (7 years), BSTZ annualized +15.00% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, BSTZ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 28.8% for BSTZ. Worst drawdown: BSTZ -59.3% vs QQQ -83.0%.
Should I hold both BSTZ and QQQ?
BSTZ and QQQ have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSTZ and QQQ?
BSTZ and QQQ share 14 common holdings with a 16.1% weight overlap. Combined, they hold 143 unique securities.
Which pays a higher dividend, BSTZ or QQQ?
BSTZ yields 7.94% while QQQ yields 0.44%, so BSTZ currently pays the higher dividend yield.
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