BUFP vs QQQ
PGIM Laddered S&P 500 Buffer 12 ETF vs Invesco QQQ Trust, Series 1
Which is better, BUFP or QQQ?
Option Writing against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 83.3%.
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
| Metric | BUFP | QQQ |
|---|---|---|
| Expense Ratio | 0.50% | 0.18%Best |
| AUM | $251M | $483.5B |
| Dividend Yield | 0.01% | 0.44% |
| Holdings | 16 | 107 |
| YTD Return | +8.83% | +17.21%Best |
| 1Y Return | +12.26% | +22.10%Best |
| 3Y Return (annualized) | - | +25.27% |
| 5Y Return (annualized) | - | +14.60% |
| Volatility (annualized) | 6.1%Best | 17.6% |
| Max Drawdown | -12.0%Best | -22.8% |
| $10,000 over 2.3 years | $13,122 | $15,329Best |
| Top 10 Weight | 83.3% | 46.5%Best |
| Fund Family | PGIM Investments | Invesco (US) |
| Category | Alternative | Equity |
| Style | Option Writing | Large Cap Growth |
| Inception | Jun 11, 2024 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 2.3 years row, are measured over the window both funds cover: Jun 13, 2024 to Sep 17, 2026 (2.3 years).
BUFP 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 2.3 years both funds cover.
BUFP vs QQQ Performance
PGIM Laddered S&P 500 Buffer 12 ETF (BUFP) is an ETF from PGIM Investments and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year BUFP returned +12.26% while QQQ returned +22.10%. Year to date, BUFP is up 8.83% versus a gain of 17.21% 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 17.6% compared with 6.1% for BUFP. 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 -12.0% for BUFP 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BUFP charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, BUFP currently yields 0.01% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 12 holdings in BUFP and 102 in QQQ, totalling 100.0% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 12 positions we hold weights for in BUFP and 102 in QQQ, against full books of 16 and 107.
What only one of them owns
Our book lists 96 positions for QQQ that do not appear in our book for BUFP (97.5% of the fund), and 12 for BUFP that do not appear in QQQ (100.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of BUFP and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BUFP or QQQ?
BUFP has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option, by $32 a year on a $10,000 investment.
Which performed better, BUFP or QQQ?
Over the past year BUFP returned +12.26% vs +22.10% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), BUFP annualized +12.54% vs +20.41% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BUFP or QQQ?
QQQ has been the more volatile fund at 17.6% annualized versus 6.1% for BUFP. Worst drawdown: BUFP -12.0% vs QQQ -22.8%.
Should I hold both BUFP and QQQ?
BUFP and QQQ have a monthly-return correlation of 0.87, 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, BUFP or QQQ?
BUFP yields 0.01% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
Is QQQ better than BUFP?
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 83.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.