EBUF vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricEBUFQQQWinner
Expense Ratio0.89%0.18%
AUM$41M$455.8B
Dividend Yield0.00%0.41%
Holdings6108
YTD Return+10.58%+19.68%
1Y Return+15.08%+26.75%
3Y Return (annualized)-+26.25%
5Y Return (annualized)-+15.39%
Volatility (annualized)4.7%30.6%
Max Drawdown-6.5%-83.0%
Fund FamilyInnovator ETFs TrustInvesco (US)
CategoryAlternativeEquity
InceptionJul 1, 2024Mar 10, 1999

EBUF vs QQQ Performance

Innovator Emerging Markets 10 Buffer ETF - Quarterly (EBUF) is a ETF from Innovator ETFs Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EBUF returned +15.08% while QQQ returned +26.75%. Year to date, EBUF is up 10.58% versus a gain of 19.68% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 4.7% for EBUF. 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 -6.5% for EBUF 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EBUF charges 0.89% per year while QQQ charges 0.18%. On a $10,000 position that is $89 vs $18 annually, a gap of $71 per year that compounds over a long holding period. On income, EBUF currently yields 0.00% against 0.41% for QQQ.

Frequently Asked Questions

Which is cheaper, EBUF or QQQ?

EBUF has an expense ratio of 0.89% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $71 per year of difference.

Which performed better, EBUF or QQQ?

Over the past year EBUF returned +15.08% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), EBUF annualized +12.27% vs +13.15% for QQQ. Past performance does not guarantee future results.

Which is riskier, EBUF or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 4.7% for EBUF. Worst drawdown: EBUF -6.5% vs QQQ -83.0%.

Should I hold both EBUF and QQQ?

EBUF and QQQ have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, EBUF or QQQ?

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

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