BUG vs QQQ
Global X Cybersecurity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. BUG delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | BUG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $1.6B | $496.3B | |
| Dividend Yield | 0.03% | 0.44% | |
| Holdings | 34 | 108 | |
| YTD Return | +44.84% | +19.52% | |
| 1Y Return | +30.51% | +26.68% | |
| 3Y Return (annualized) | +22.22% | +26.64% | |
| 5Y Return (annualized) | +8.20% | +15.36% | |
| Volatility (annualized) | 28.4% | 30.6% | |
| Max Drawdown | -41.7% | -83.0% | |
| Fund Family | Global X by mirae Asset | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 25, 2019 | Mar 10, 1999 |
BUG vs QQQ Performance
Global X Cybersecurity ETF (BUG) is a ETF from Global X by mirae Asset and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BUG returned +30.51% while QQQ returned +26.68%. Year to date, BUG is up 44.84% versus a gain of 19.52% for QQQ.
Over three years, BUG compounded at +22.22% per year against +26.64% for QQQ; over five years the annualized figures are +8.20% and +15.36% respectively. Across the full 7-year window we track, BUG has the edge at +16.67% annualized vs +13.14%. 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 28.4% for BUG. 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 -41.7% for BUG 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BUG 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, BUG currently yields 0.03% against 0.44% for QQQ.
Holdings Overlap
BUG and QQQ share 1 holdings out of 128 unique holdings combined, representing a 0.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BUG | Weight in QQQ | Difference |
|---|---|---|---|
| CRWD | 7.27% | 0.94% | 6.33% |
Frequently Asked Questions
Which is cheaper, BUG or QQQ?
BUG has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, BUG or QQQ?
Over the past year BUG returned +30.51% vs +26.68% for QQQ, so BUG leads on 1-year performance. Over the longest common window we track (7 years), BUG annualized +16.67% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, BUG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 28.4% for BUG. Worst drawdown: BUG -41.7% vs QQQ -83.0%.
Should I hold both BUG and QQQ?
BUG and QQQ have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BUG and QQQ?
BUG and QQQ share 1 common holdings with a 0.9% weight overlap. Combined, they hold 128 unique securities.
Which pays a higher dividend, BUG or QQQ?
BUG yields 0.03% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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