BUFQ vs QQQ
FT Vest Laddered Nasdaq 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 | BUFQ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.00% | 0.18% | |
| AUM | $1.5B | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 5 | 108 | |
| YTD Return | +10.28% | +17.46% | |
| 1Y Return | +16.08% | +26.02% | |
| 3Y Return (annualized) | +16.15% | +25.51% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 11.6% | 30.6% | |
| Max Drawdown | -15.7% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Jun 15, 2022 | Mar 10, 1999 |
BUFQ vs QQQ Performance
FT Vest Laddered Nasdaq Buffer ETF (BUFQ) 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 BUFQ returned +16.08% while QQQ returned +26.02%. Year to date, BUFQ is up 10.28% versus a gain of 17.46% for QQQ.
Over three years, BUFQ compounded at +16.15% per year against +25.51% for QQQ. Across the full 4-year window we track, BUFQ has the edge at +18.12% annualized vs +13.08%. 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 11.6% for BUFQ. 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 -15.7% for BUFQ 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
BUFQ charges 1.00% per year while QQQ charges 0.18%. On a $10,000 position that is $100 vs $18 annually, a gap of $82 per year that compounds over a long holding period. On income, BUFQ currently yields 0.00% against 0.41% for QQQ.
Holdings Overlap
BUFQ and QQQ share 0 holdings out of 107 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, BUFQ or QQQ?
BUFQ has an expense ratio of 1.00% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $82 per year of difference.
Which performed better, BUFQ or QQQ?
Over the past year BUFQ returned +16.08% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), BUFQ annualized +18.12% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, BUFQ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.6% for BUFQ. Worst drawdown: BUFQ -15.7% vs QQQ -83.0%.
Should I hold both BUFQ and QQQ?
BUFQ and QQQ have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between BUFQ and QQQ?
BUFQ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 107 unique securities.
Which pays a higher dividend, BUFQ or QQQ?
BUFQ yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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