BTT vs QQQ

BTT vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. BTT offers more diversification with 557 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: BTT

Side-by-Side Comparison

MetricBTTQQQWinner
Expense Ratio1.34%0.18%
AUM$1.6B$496.3B
Dividend Yield2.28%0.44%
Holdings557108
YTD Return+0.57%+17.30%
1Y Return+4.38%+24.93%
3Y Return (annualized)+6.17%+26.19%
5Y Return (annualized)-0.36%+15.34%
Volatility (annualized)10.2%30.6%
Max Drawdown-35.0%-83.0%
Fund FamilyBlackRock, Inc. (US)Invesco (US)
CategoryTax PreferredEquity
InceptionAug 29, 2012Mar 10, 1999

BTT vs QQQ Performance

BlackRock Municipal 2030 Target Term Trust (BTT) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BTT returned +4.38% while QQQ returned +24.93%. Year to date, BTT is up 0.57% versus a gain of 17.30% for QQQ.

Over three years, BTT compounded at +6.17% per year against +26.19% for QQQ; over five years the annualized figures are -0.36% and +15.34% respectively. Across the full 14-year window we track, QQQ has the edge at +13.06% annualized vs +0.41%. 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 10.2% for BTT. 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 -35.0% for BTT 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BTT charges 1.34% per year while QQQ charges 0.18%. On a $10,000 position that is $134 vs $18 annually, a gap of $116 per year that compounds over a long holding period. On income, BTT currently yields 2.28% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

BTT and QQQ share 0 holdings out of 227 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, BTT or QQQ?

BTT has an expense ratio of 1.34% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $116 per year of difference.

Which performed better, BTT or QQQ?

Over the past year BTT returned +4.38% vs +24.93% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), BTT annualized +0.41% vs +13.06% for QQQ. Past performance does not guarantee future results.

Which is riskier, BTT or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 10.2% for BTT. Worst drawdown: BTT -35.0% vs QQQ -83.0%.

Should I hold both BTT and QQQ?

BTT and QQQ have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BTT and QQQ?

BTT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 227 unique securities.

Which pays a higher dividend, BTT or QQQ?

BTT yields 2.28% while QQQ yields 0.44%, so BTT currently pays the higher dividend yield.

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