BUFY vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricBUFYQQQWinner
Expense Ratio1.00%0.18%
AUM$146M$455.8B
Dividend Yield0.00%0.41%
Holdings5108
YTD Return+7.02%+17.85%
1Y Return+12.79%+26.45%
3Y Return (annualized)-+26.07%
5Y Return (annualized)-+15.16%
Volatility (annualized)6.2%30.6%
Max Drawdown-8.0%-83.0%
Fund FamilyFirst Trust Portfolios (US)Invesco (US)
CategoryAlternativeEquity
InceptionSep 25, 2024Mar 10, 1999

BUFY vs QQQ Performance

FT Vest Laddered International Moderate Buffer ETF (BUFY) 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 BUFY returned +12.79% while QQQ returned +26.45%. Year to date, BUFY is up 7.02% 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 6.2% for BUFY. 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 -8.0% for BUFY 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BUFY 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, BUFY currently yields 0.00% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

BUFY 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, BUFY or QQQ?

BUFY 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, BUFY or QQQ?

Over the past year BUFY returned +12.79% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), BUFY annualized +9.41% vs +13.09% for QQQ. Past performance does not guarantee future results.

Which is riskier, BUFY or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 6.2% for BUFY. Worst drawdown: BUFY -8.0% vs QQQ -83.0%.

Should I hold both BUFY and QQQ?

BUFY and QQQ have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BUFY and QQQ?

BUFY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 107 unique securities.

Which pays a higher dividend, BUFY or QQQ?

BUFY yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.

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