BUFM vs QQQ
AB Moderate 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 | BUFM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.18% | |
| AUM | $450M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 7 | 108 | |
| YTD Return | +5.43% | +17.85% | |
| 1Y Return | +11.02% | +26.45% | |
| 3Y Return (annualized) | - | +26.07% | |
| 5Y Return (annualized) | - | +15.16% | |
| Volatility (annualized) | 5.4% | 30.6% | |
| Max Drawdown | -9.4% | -83.0% | |
| Fund Family | AllianceBernstein L.P. | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 9, 2024 | Mar 10, 1999 |
BUFM vs QQQ Performance
AB Moderate Buffer ETF (BUFM) is a ETF from AllianceBernstein L.P. and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BUFM returned +11.02% while QQQ returned +26.45%. Year to date, BUFM is up 5.43% 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 5.4% for BUFM. 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 -9.4% for BUFM 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BUFM 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, BUFM currently yields 0.00% against 0.41% for QQQ.
Holdings Overlap
BUFM 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, BUFM or QQQ?
BUFM 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, BUFM or QQQ?
Over the past year BUFM returned +11.02% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), BUFM annualized +10.46% vs +13.09% for QQQ. Past performance does not guarantee future results.
Which is riskier, BUFM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.4% for BUFM. Worst drawdown: BUFM -9.4% vs QQQ -83.0%.
Should I hold both BUFM and QQQ?
BUFM and QQQ have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BUFM and QQQ?
BUFM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, BUFM or QQQ?
BUFM yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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