BTZ vs QQQ
BlackRock Credit Allocation Income Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. BTZ offers more diversification with 2,036 holdings.
Side-by-Side Comparison
| Metric | BTZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.12% | 0.18% | |
| AUM | $1.0B | $496.3B | |
| Dividend Yield | 9.35% | 0.44% | |
| Holdings | 2,036 | 108 | |
| YTD Return | +0.49% | +16.64% | |
| 1Y Return | +2.93% | +27.27% | |
| 3Y Return (annualized) | +11.23% | +25.96% | |
| 5Y Return (annualized) | +0.96% | +14.54% | |
| Volatility (annualized) | 18.2% | 30.6% | |
| Max Drawdown | -80.2% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 27, 2006 | Mar 10, 1999 |
BTZ vs QQQ Performance
BlackRock Credit Allocation Income Trust (BTZ) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BTZ returned +2.93% while QQQ returned +27.27%. Year to date, BTZ is up 0.49% versus a gain of 16.64% for QQQ.
Over three years, BTZ compounded at +11.23% per year against +25.96% for QQQ; over five years the annualized figures are +0.96% and +14.54% respectively. Across the full 20-year window we track, QQQ has the edge at +13.03% annualized vs -2.02%. 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 18.2% for BTZ. 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 -80.2% for BTZ 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BTZ charges 1.12% per year while QQQ charges 0.18%. On a $10,000 position that is $112 vs $18 annually, a gap of $94 per year that compounds over a long holding period. On income, BTZ currently yields 9.35% against 0.44% for QQQ.
Holdings Overlap
BTZ and QQQ share 0 holdings out of 1243 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, BTZ or QQQ?
BTZ has an expense ratio of 1.12% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $94 per year of difference.
Which performed better, BTZ or QQQ?
Over the past year BTZ returned +2.93% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), BTZ annualized -2.02% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, BTZ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.2% for BTZ. Worst drawdown: BTZ -80.2% vs QQQ -83.0%.
Should I hold both BTZ and QQQ?
BTZ and QQQ have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BTZ and QQQ?
BTZ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1243 unique securities.
Which pays a higher dividend, BTZ or QQQ?
BTZ yields 9.35% while QQQ yields 0.44%, so BTZ currently pays the higher dividend yield.
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