BWEB vs QQQ
Bitwise Web3 ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. BWEB delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | BWEB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.18% | |
| AUM | $6M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 41 | 108 | |
| YTD Return | +6.19% | +18.20% | |
| 1Y Return | +31.14% | +27.63% | |
| 3Y Return (annualized) | +35.54% | +25.54% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 35.6% | 30.6% | |
| Max Drawdown | -33.7% | -83.0% | |
| Fund Family | Bitwise | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 3, 2022 | Mar 10, 1999 |
BWEB vs QQQ Performance
Bitwise Web3 ETF (BWEB) is a ETF from Bitwise and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BWEB returned +31.14% while QQQ returned +27.63%. Year to date, BWEB is up 6.19% versus a gain of 18.20% for QQQ.
Over three years, BWEB compounded at +35.54% per year against +25.54% for QQQ. Across the full 4-year window we track, BWEB has the edge at +33.63% annualized vs +13.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BWEB has been the more volatile fund, with annualized monthly volatility of 35.6% compared with 30.6% for QQQ. 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 -33.7% for BWEB 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BWEB charges 0.85% per year while QQQ charges 0.18%. On a $10,000 position that is $85 vs $18 annually, a gap of $67 per year that compounds over a long holding period. On income, BWEB currently yields 0.00% against 0.41% for QQQ.
Holdings Overlap
BWEB and QQQ share 7 holdings out of 136 unique holdings combined, representing a 8.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BWEB or QQQ?
BWEB has an expense ratio of 0.85% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, BWEB or QQQ?
Over the past year BWEB returned +31.14% vs +27.63% for QQQ, so BWEB leads on 1-year performance. Over the longest common window we track (4 years), BWEB annualized +33.63% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, BWEB or QQQ?
BWEB has been the more volatile fund at 35.6% annualized versus 30.6% for QQQ. Worst drawdown: BWEB -33.7% vs QQQ -83.0%.
Should I hold both BWEB and QQQ?
BWEB and QQQ have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BWEB and QQQ?
BWEB and QQQ share 7 common holdings with a 8.5% weight overlap. Combined, they hold 136 unique securities.
Which pays a higher dividend, BWEB or QQQ?
BWEB yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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