Quick Verdict

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

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricBUFCQQQWinner
Expense Ratio0.69%0.18%
AUM$1.0B$455.8B
Dividend Yield0.00%0.41%
Holdings4108
YTD Return+4.37%+18.20%
1Y Return+8.27%+27.63%
3Y Return (annualized)-+25.54%
5Y Return (annualized)-+15.12%
Volatility (annualized)3.5%30.6%
Max Drawdown-8.3%-83.0%
Fund FamilyAllianceBernstein L.P.Invesco (US)
CategoryAlternativeEquity
InceptionDec 13, 2023Mar 10, 1999

BUFC vs QQQ Performance

AB Conservative Buffer ETF (BUFC) is a ETF from AllianceBernstein L.P. and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BUFC returned +8.27% while QQQ returned +27.63%. Year to date, BUFC is up 4.37% versus a gain of 18.20% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.5% for BUFC. 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 -8.3% for BUFC 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 0.80. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BUFC charges 0.69% per year while QQQ charges 0.18%. On a $10,000 position that is $69 vs $18 annually, a gap of $51 per year that compounds over a long holding period. On income, BUFC currently yields 0.00% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

BUFC and QQQ share 0 holdings out of 104 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, BUFC or QQQ?

BUFC has an expense ratio of 0.69% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $51 per year of difference.

Which performed better, BUFC or QQQ?

Over the past year BUFC returned +8.27% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), BUFC annualized +8.04% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, BUFC or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 3.5% for BUFC. Worst drawdown: BUFC -8.3% vs QQQ -83.0%.

Should I hold both BUFC and QQQ?

BUFC and QQQ have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BUFC and QQQ?

BUFC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.

Which pays a higher dividend, BUFC or QQQ?

BUFC yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.

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