BUFI vs QQQ

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

MetricBUFIQQQWinner
Expense Ratio0.69%0.18%
AUM$139M$455.8B
Dividend Yield0.00%0.41%
Holdings8108
YTD Return+7.22%+17.85%
1Y Return+14.26%+26.45%
3Y Return (annualized)-+26.07%
5Y Return (annualized)-+15.16%
Volatility (annualized)5.1%30.6%
Max Drawdown-7.4%-83.0%
Fund FamilyAllianceBernstein L.P.Invesco (US)
CategoryAlternativeEquity
InceptionDec 9, 2024Mar 10, 1999

BUFI vs QQQ Performance

AB International Buffer ETF (BUFI) is a ETF from AllianceBernstein L.P. and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BUFI returned +14.26% while QQQ returned +26.45%. Year to date, BUFI is up 7.22% versus a gain of 17.85% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 5.1% 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 -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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.

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 0.41% for QQQ.

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. On a $10,000 investment, that is $51 per year of difference.

Which performed better, BUFI or QQQ?

Over the past year BUFI returned +14.26% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), BUFI annualized +13.85% vs +13.09% for QQQ. Past performance does not guarantee future results.

Which is riskier, BUFI or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 5.1% for BUFI. Worst drawdown: BUFI -7.4% vs QQQ -83.0%.

Should I hold both BUFI and QQQ?

BUFI and QQQ have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, BUFI or QQQ?

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

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