BUFG vs QQQ
FT Vest Buffered Allocation Growth 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 | BUFG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.13% | 0.18% | |
| AUM | $324M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 8 | 108 | |
| YTD Return | +8.55% | +17.85% | |
| 1Y Return | +14.84% | +26.45% | |
| 3Y Return (annualized) | +13.91% | +26.07% | |
| 5Y Return (annualized) | - | +15.16% | |
| Volatility (annualized) | 10.6% | 30.6% | |
| Max Drawdown | -17.6% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Oct 26, 2021 | Mar 10, 1999 |
BUFG vs QQQ Performance
FT Vest Buffered Allocation Growth ETF (BUFG) is a ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BUFG returned +14.84% while QQQ returned +26.45%. Year to date, BUFG is up 8.55% versus a gain of 17.85% for QQQ.
Over three years, BUFG compounded at +13.91% per year against +26.07% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.09% annualized vs +8.85%. 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 10.6% for BUFG. 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 -17.6% for BUFG 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BUFG charges 1.13% per year while QQQ charges 0.18%. On a $10,000 position that is $113 vs $18 annually, a gap of $95 per year that compounds over a long holding period. On income, BUFG currently yields 0.00% against 0.41% for QQQ.
Holdings Overlap
BUFG and QQQ share 0 holdings out of 110 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, BUFG or QQQ?
BUFG has an expense ratio of 1.13% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $95 per year of difference.
Which performed better, BUFG or QQQ?
Over the past year BUFG returned +14.84% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), BUFG annualized +8.85% vs +13.09% for QQQ. Past performance does not guarantee future results.
Which is riskier, BUFG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.6% for BUFG. Worst drawdown: BUFG -17.6% vs QQQ -83.0%.
Should I hold both BUFG and QQQ?
BUFG and QQQ have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BUFG and QQQ?
BUFG and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 110 unique securities.
Which pays a higher dividend, BUFG or QQQ?
BUFG yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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