BTC vs QQQ
Grayscale Bitcoin Mini Trust ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
BTC has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | BTC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $3.8B | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 1 | 108 | |
| YTD Return | -29.54% | +19.68% | |
| 1Y Return | -48.57% | +26.75% | |
| 3Y Return (annualized) | - | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 45.2% | 30.6% | |
| Max Drawdown | -53.3% | -83.0% | |
| Fund Family | Grayscale | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Jul 31, 2024 | Mar 10, 1999 |
BTC vs QQQ Performance
Grayscale Bitcoin Mini Trust ETF (BTC) is a ETF from Grayscale and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BTC returned -48.57% while QQQ returned +26.75%. Year to date, BTC is down 29.54% versus a gain of 19.68% for QQQ.
Risk: Volatility and Drawdowns
BTC has been the more volatile fund, with annualized monthly volatility of 45.2% compared with 30.6% for QQQ. 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 -53.3% for BTC 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BTC charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, BTC currently yields 0.00% against 0.41% for QQQ.
Frequently Asked Questions
Which is cheaper, BTC or QQQ?
BTC has an expense ratio of 0.15% while QQQ charges 0.18%. BTC is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, BTC or QQQ?
Over the past year BTC returned -48.57% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), BTC annualized -1.62% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, BTC or QQQ?
BTC has been the more volatile fund at 45.2% annualized versus 30.6% for QQQ. Worst drawdown: BTC -53.3% vs QQQ -83.0%.
Should I hold both BTC and QQQ?
BTC and QQQ have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, BTC or QQQ?
BTC yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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