BTX vs QQQ

Quick Verdict

QQQ has a lower expense ratio. BTX delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: BTXMore Diversified: QQQ

Side-by-Side Comparison

MetricBTXQQQWinner
Expense Ratio1.35%0.18%
AUM$1.1B$455.8B
Dividend Yield6.72%0.41%
Holdings82108
YTD Return+35.02%+17.46%
1Y Return+27.96%+26.02%
3Y Return (annualized)+14.74%+25.51%
5Y Return (annualized)-5.79%+15.12%
Volatility (annualized)27.7%30.6%
Max Drawdown-67.3%-83.0%
Fund FamilyBlackRock, Inc. (US)Invesco (US)
CategoryEquityEquity
InceptionMar 26, 2021Mar 10, 1999

BTX vs QQQ Performance

BlackRock Technology and Private Equity Term Trust (BTX) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BTX returned +27.96% while QQQ returned +26.02%. Year to date, BTX is up 35.02% versus a gain of 17.46% for QQQ.

Over three years, BTX compounded at +14.74% per year against +25.51% for QQQ; over five years the annualized figures are -5.79% and +15.12% respectively. Across the full 5-year window we track, QQQ has the edge at +13.08% annualized vs -5.49%. 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 27.7% for BTX. 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 -67.3% for BTX 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 0.82. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BTX charges 1.35% per year while QQQ charges 0.18%. On a $10,000 position that is $135 vs $18 annually, a gap of $117 per year that compounds over a long holding period. On income, BTX currently yields 6.72% against 0.41% for QQQ.

Holdings Overlap

15.6%overlap

BTX and QQQ share 13 holdings out of 147 unique holdings combined, representing a 15.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BTXWeight in QQQDifference
NVDA8.47%7.88%0.59%
MU0.70%4.67%3.97%
TSLA1.50%3.16%1.66%
AMDProProPro
LITEProProPro
KLACProProPro
APPProProPro
PLTRProProPro
MPWRProProPro
TTWOProProPro
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Frequently Asked Questions

Which is cheaper, BTX or QQQ?

BTX has an expense ratio of 1.35% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $117 per year of difference.

Which performed better, BTX or QQQ?

Over the past year BTX returned +27.96% vs +26.02% for QQQ, so BTX leads on 1-year performance. Over the longest common window we track (5 years), BTX annualized -5.49% vs +13.08% for QQQ. Past performance does not guarantee future results.

Which is riskier, BTX or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 27.7% for BTX. Worst drawdown: BTX -67.3% vs QQQ -83.0%.

Should I hold both BTX and QQQ?

BTX and QQQ have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BTX and QQQ?

BTX and QQQ share 13 common holdings with a 15.6% weight overlap. Combined, they hold 147 unique securities.

Which pays a higher dividend, BTX or QQQ?

BTX yields 6.72% while QQQ yields 0.41%, so BTX currently pays the higher dividend yield.

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