BUFF vs QQQ
BUFF vs QQQ
Innovator Laddered Allocation Power 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 | BUFF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.89% | 0.18% | |
| AUM | $924M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 14 | 108 | |
| YTD Return | +7.16% | +18.20% | |
| 1Y Return | +12.59% | +27.63% | |
| 3Y Return (annualized) | +11.87% | +25.54% | |
| 5Y Return (annualized) | +8.86% | +15.12% | |
| Volatility (annualized) | 13.4% | 30.6% | |
| Max Drawdown | -46.2% | -83.0% | |
| Fund Family | Innovator ETFs Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Oct 20, 2016 | Mar 10, 1999 |
BUFF vs QQQ Performance
Innovator Laddered Allocation Power Buffer ETF (BUFF) is a ETF from Innovator ETFs Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BUFF returned +12.59% while QQQ returned +27.63%. Year to date, BUFF is up 7.16% versus a gain of 18.20% for QQQ.
Over three years, BUFF compounded at +11.87% per year against +25.54% for QQQ; over five years the annualized figures are +8.86% and +15.12% respectively. Across the full 10-year window we track, QQQ has the edge at +13.11% annualized vs +7.96%. 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 13.4% for BUFF. 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 -46.2% for BUFF 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BUFF 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, BUFF currently yields 0.00% against 0.41% for QQQ.
Holdings Overlap
BUFF 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, BUFF or QQQ?
BUFF 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, BUFF or QQQ?
Over the past year BUFF returned +12.59% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), BUFF annualized +7.96% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, BUFF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.4% for BUFF. Worst drawdown: BUFF -46.2% vs QQQ -83.0%.
Should I hold both BUFF and QQQ?
BUFF and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BUFF and QQQ?
BUFF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 115 unique securities.
Which pays a higher dividend, BUFF or QQQ?
BUFF yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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