BUFB vs QQQ
Innovator Laddered Allocation Buffer ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | BUFB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.89% | 0.18% | |
| AUM | $320M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 14 | 108 | |
| YTD Return | +9.90% | +18.20% | |
| 1Y Return | +16.89% | +27.63% | |
| 3Y Return (annualized) | +15.09% | +25.54% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 10.8% | 30.6% | |
| Max Drawdown | -14.9% | -83.0% | |
| Fund Family | Innovator ETFs Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Feb 8, 2022 | Mar 10, 1999 |
BUFB vs QQQ Performance
Innovator Laddered Allocation Buffer ETF (BUFB) is a ETF from Innovator ETFs Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BUFB returned +16.89% while QQQ returned +27.63%. Year to date, BUFB is up 9.90% versus a gain of 18.20% for QQQ.
Over three years, BUFB compounded at +15.09% per year against +25.54% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.11% annualized vs +11.02%. 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 10.8% for BUFB. 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 -14.9% for BUFB 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
BUFB charges 0.89% per year while QQQ charges 0.18%. On a $10,000 position that is $89 vs $18 annually, a gap of $71 per year that compounds over a long holding period. On income, BUFB currently yields 0.00% against 0.41% for QQQ.
Holdings Overlap
BUFB and QQQ share 0 holdings out of 115 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, BUFB or QQQ?
BUFB has an expense ratio of 0.89% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, BUFB or QQQ?
Over the past year BUFB returned +16.89% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), BUFB annualized +11.02% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, BUFB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.8% for BUFB. Worst drawdown: BUFB -14.9% vs QQQ -83.0%.
Should I hold both BUFB and QQQ?
BUFB and QQQ have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between BUFB and QQQ?
BUFB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 115 unique securities.
Which pays a higher dividend, BUFB or QQQ?
BUFB yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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