BTO vs QQQ
John Hancock Financial Opportunities Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. BTO offers more diversification with 184 holdings.
Side-by-Side Comparison
| Metric | BTO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.96% | 0.18% | |
| AUM | $709M | $496.3B | |
| Dividend Yield | 6.18% | 0.44% | |
| Holdings | 184 | 108 | |
| YTD Return | +16.78% | +15.47% | |
| 1Y Return | +15.48% | +24.44% | |
| 3Y Return (annualized) | +24.04% | +25.47% | |
| 5Y Return (annualized) | +5.78% | +14.22% | |
| Volatility (annualized) | 31.1% | 30.6% | |
| Max Drawdown | -95.5% | -83.0% | |
| Fund Family | John Hancock Investment Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 18, 1994 | Mar 10, 1999 |
BTO vs QQQ Performance
John Hancock Financial Opportunities Fund (BTO) is a ETF from John Hancock Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BTO returned +15.48% while QQQ returned +24.44%. Year to date, BTO is up 16.78% versus a gain of 15.47% for QQQ.
Over three years, BTO compounded at +24.04% per year against +25.47% for QQQ; over five years the annualized figures are +5.78% and +14.22% respectively. Across the full 23-year window we track, QQQ has the edge at +12.99% annualized vs -4.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BTO has been the more volatile fund, with annualized monthly volatility of 31.1% 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 -95.5% for BTO 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BTO charges 2.96% per year while QQQ charges 0.18%. On a $10,000 position that is $296 vs $18 annually, a gap of $278 per year that compounds over a long holding period. On income, BTO currently yields 6.18% against 0.44% for QQQ.
Holdings Overlap
BTO and QQQ share 0 holdings out of 236 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, BTO or QQQ?
BTO has an expense ratio of 2.96% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $278 per year of difference.
Which performed better, BTO or QQQ?
Over the past year BTO returned +15.48% vs +24.44% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), BTO annualized -4.16% vs +12.99% for QQQ. Past performance does not guarantee future results.
Which is riskier, BTO or QQQ?
BTO has been the more volatile fund at 31.1% annualized versus 30.6% for QQQ. Worst drawdown: BTO -95.5% vs QQQ -83.0%.
Should I hold both BTO and QQQ?
BTO and QQQ have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BTO and QQQ?
BTO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 236 unique securities.
Which pays a higher dividend, BTO or QQQ?
BTO yields 6.18% while QQQ yields 0.44%, so BTO currently pays the higher dividend yield.
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