BUFS vs QQQ
FT Vest Laddered Small Cap 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 | BUFS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.01% | 0.18% | |
| AUM | $180M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 5 | 108 | |
| YTD Return | +10.20% | +17.85% | |
| 1Y Return | +18.90% | +26.45% | |
| 3Y Return (annualized) | - | +26.07% | |
| 5Y Return (annualized) | - | +15.16% | |
| Volatility (annualized) | 8.2% | 30.6% | |
| Max Drawdown | -15.0% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 29, 2024 | Mar 10, 1999 |
BUFS vs QQQ Performance
FT Vest Laddered Small Cap Moderate Buffer ETF (BUFS) 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 BUFS returned +18.90% while QQQ returned +26.45%. Year to date, BUFS is up 10.20% 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 8.2% for BUFS. 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 -15.0% for BUFS 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BUFS charges 1.01% per year while QQQ charges 0.18%. On a $10,000 position that is $101 vs $18 annually, a gap of $83 per year that compounds over a long holding period. On income, BUFS currently yields 0.00% against 0.41% for QQQ.
Holdings Overlap
BUFS 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, BUFS or QQQ?
BUFS has an expense ratio of 1.01% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $83 per year of difference.
Which performed better, BUFS or QQQ?
Over the past year BUFS returned +18.90% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), BUFS annualized +11.39% vs +13.09% for QQQ. Past performance does not guarantee future results.
Which is riskier, BUFS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.2% for BUFS. Worst drawdown: BUFS -15.0% vs QQQ -83.0%.
Should I hold both BUFS and QQQ?
BUFS and QQQ have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BUFS and QQQ?
BUFS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 107 unique securities.
Which pays a higher dividend, BUFS or QQQ?
BUFS yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.