GBTC vs QQQ
Grayscale Bitcoin Trust ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | GBTC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.50% | 0.18% | |
| AUM | $8.4B | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 1 | 108 | |
| YTD Return | -14.98% | +16.64% | |
| 1Y Return | -32.32% | +27.27% | |
| 3Y Return (annualized) | +51.98% | +25.96% | |
| 5Y Return (annualized) | +8.40% | +14.54% | |
| Volatility (annualized) | 117.5% | 30.6% | |
| Max Drawdown | -89.9% | -83.0% | |
| Fund Family | Grayscale | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 25, 2013 | Mar 10, 1999 |
GBTC vs QQQ Performance
Grayscale Bitcoin Trust ETF (GBTC) is a ETF from Grayscale and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year GBTC returned -32.32% while QQQ returned +27.27%. Year to date, GBTC is down 14.98% versus a gain of 16.64% for QQQ.
Over three years, GBTC compounded at +51.98% per year against +25.96% for QQQ; over five years the annualized figures are +8.40% and +14.54% respectively. Across the full 11-year window we track, GBTC has the edge at +55.55% annualized vs +13.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GBTC has been the more volatile fund, with annualized monthly volatility of 117.5% 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 -89.9% for GBTC 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GBTC charges 1.50% per year while QQQ charges 0.18%. On a $10,000 position that is $150 vs $18 annually, a gap of $132 per year that compounds over a long holding period. On income, GBTC currently yields 0.00% against 0.44% for QQQ.
Frequently Asked Questions
Which is cheaper, GBTC or QQQ?
GBTC has an expense ratio of 1.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $132 per year of difference.
Which performed better, GBTC or QQQ?
Over the past year GBTC returned -32.32% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), GBTC annualized +55.55% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, GBTC or QQQ?
GBTC has been the more volatile fund at 117.5% annualized versus 30.6% for QQQ. Worst drawdown: GBTC -89.9% vs QQQ -83.0%.
Should I hold both GBTC and QQQ?
GBTC and QQQ have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, GBTC or QQQ?
GBTC yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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