BYLD vs QQQ
iShares Yield Optimized Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
BYLD has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | BYLD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.13% | 0.18% | |
| AUM | $5M | $496.3B | |
| Dividend Yield | 5.00% | 0.44% | |
| Holdings | 13 | 108 | |
| YTD Return | +1.08% | +19.52% | |
| 1Y Return | +3.84% | +26.68% | |
| 3Y Return (annualized) | +6.47% | +26.64% | |
| 5Y Return (annualized) | +1.93% | +15.36% | |
| Volatility (annualized) | 4.6% | 30.6% | |
| Max Drawdown | -15.9% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 22, 2014 | Mar 10, 1999 |
BYLD vs QQQ Performance
iShares Yield Optimized Bond ETF (BYLD) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BYLD returned +3.84% while QQQ returned +26.68%. Year to date, BYLD is up 1.08% versus a gain of 19.52% for QQQ.
Over three years, BYLD compounded at +6.47% per year against +26.64% for QQQ; over five years the annualized figures are +1.93% and +15.36% respectively. Across the full 12-year window we track, QQQ has the edge at +13.14% annualized vs +0.99%. 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 4.6% for BYLD. 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 -15.9% for BYLD 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BYLD charges 0.13% per year while QQQ charges 0.18%. On a $10,000 position that is $13 vs $18 annually, a gap of $5 per year that compounds over a long holding period. On income, BYLD currently yields 5.00% against 0.44% for QQQ.
Holdings Overlap
BYLD and QQQ share 3 holdings out of 15005 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BYLD or QQQ?
BYLD has an expense ratio of 0.13% while QQQ charges 0.18%. BYLD is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, BYLD or QQQ?
Over the past year BYLD returned +3.84% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), BYLD annualized +0.99% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, BYLD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.6% for BYLD. Worst drawdown: BYLD -15.9% vs QQQ -83.0%.
Should I hold both BYLD and QQQ?
BYLD and QQQ have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BYLD and QQQ?
BYLD and QQQ share 3 common holdings with a 0.1% weight overlap. Combined, they hold 15005 unique securities.
Which pays a higher dividend, BYLD or QQQ?
BYLD yields 5.00% while QQQ yields 0.44%, so BYLD currently pays the higher dividend yield.
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