BUFR vs QQQ
FT Vest Laddered 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 | BUFR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.18% | |
| AUM | $10.1B | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 13 | 108 | |
| YTD Return | +8.72% | +17.46% | |
| 1Y Return | +14.81% | +26.02% | |
| 3Y Return (annualized) | +13.87% | +25.51% | |
| 5Y Return (annualized) | +9.95% | +15.12% | |
| Volatility (annualized) | 9.4% | 30.6% | |
| Max Drawdown | -13.7% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Aug 10, 2020 | Mar 10, 1999 |
BUFR vs QQQ Performance
FT Vest Laddered Buffer ETF (BUFR) 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 BUFR returned +14.81% while QQQ returned +26.02%. Year to date, BUFR is up 8.72% versus a gain of 17.46% for QQQ.
Over three years, BUFR compounded at +13.87% per year against +25.51% for QQQ; over five years the annualized figures are +9.95% and +15.12% respectively. Across the full 6-year window we track, QQQ has the edge at +13.08% annualized vs +10.97%. 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 9.4% for BUFR. 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 -13.7% for BUFR 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BUFR charges 0.95% per year while QQQ charges 0.18%. On a $10,000 position that is $95 vs $18 annually, a gap of $77 per year that compounds over a long holding period. On income, BUFR currently yields 0.00% against 0.41% for QQQ.
Holdings Overlap
BUFR and QQQ share 0 holdings out of 115 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, BUFR or QQQ?
BUFR has an expense ratio of 0.95% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, BUFR or QQQ?
Over the past year BUFR returned +14.81% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), BUFR annualized +10.97% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, BUFR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 9.4% for BUFR. Worst drawdown: BUFR -13.7% vs QQQ -83.0%.
Should I hold both BUFR and QQQ?
BUFR and QQQ have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BUFR and QQQ?
BUFR and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 115 unique securities.
Which pays a higher dividend, BUFR or QQQ?
BUFR yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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