BUFI vs QQQ

BUFI vs QQQ

Which is better, BUFI or QQQ?

Option Writing against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y and the full window.

Lower Fees: QQQHigher Returns: QQQ

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricBUFIQQQ
Expense Ratio0.69%0.18%Best
AUM$141M$483.5B
Dividend Yield0.00%0.44%
Holdings7107
YTD Return+6.07%+15.21%Best
1Y Return+10.22%+19.78%Best
3Y Return (annualized)-+24.58%
5Y Return (annualized)-+13.93%
Volatility (annualized)5.3%Best19.7%
Max Drawdown-7.4%Best-22.8%
$10,000 over 1.8 years$12,326$13,741Best
Fund FamilyAllianceBernstein L.P.Invesco (US)
CategoryAlternativeEquity
StyleOption WritingLarge Cap Growth
InceptionDec 9, 2024Mar 10, 1999

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 1.8 years row, are measured over the window both funds cover: Dec 10, 2024 to Sep 16, 2026 (1.8 years).

BUFI vs QQQ growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.8 years both funds cover.

BUFI vs QQQ Performance

AB International Buffer ETF (BUFI) is an ETF from AllianceBernstein L.P. and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year BUFI returned +10.22% while QQQ returned +19.78%. Year to date, BUFI is up 6.07% versus a gain of 15.21% for QQQ.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 19.7% compared with 5.3% for BUFI. 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 -7.4% for BUFI and -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.46. They move together some of the time, and apart the rest.

Fees and Cost Over Time

BUFI 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, BUFI currently yields 0.00% against 0.44% for QQQ.

You are not choosing between two funds in isolation.

Whichever of BUFI and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

BUFIQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, BUFI or QQQ?

BUFI has an expense ratio of 0.69% while QQQ charges 0.18%. QQQ is the cheaper option, by $51 a year on a $10,000 investment.

Which performed better, BUFI or QQQ?

Over the past year BUFI returned +10.22% vs +19.78% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), BUFI annualized +12.32% vs +19.31% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, BUFI or QQQ?

QQQ has been the more volatile fund at 19.7% annualized versus 5.3% for BUFI. Worst drawdown: BUFI -7.4% vs QQQ -22.8%.

Should I hold both BUFI and QQQ?

BUFI and QQQ have a monthly-return correlation of 0.46, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, BUFI or QQQ?

BUFI yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.

Is QQQ better than BUFI?

QQQ has a lower expense ratio. QQQ led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.