Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricKBUFQQQWinner
Expense Ratio1.01%0.18%
AUM$7M$455.8B
Dividend Yield8.92%0.41%
Holdings4108
YTD Return-11.45%+18.20%
1Y Return-5.26%+27.63%
3Y Return (annualized)-+25.54%
5Y Return (annualized)-+15.12%
Volatility (annualized)12.7%30.6%
Max Drawdown-21.1%-83.0%
Fund FamilyKraneSharesInvesco (US)
CategoryAlternativeEquity
InceptionFeb 8, 2024Mar 10, 1999

KBUF vs QQQ Performance

KraneShares 90% KWEB Defined Outcome January 2026 ETF (KBUF) is a ETF from KraneShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KBUF returned -5.26% while QQQ returned +27.63%. Year to date, KBUF is down 11.45% versus a gain of 18.20% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 12.7% for KBUF. 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 -21.1% for KBUF 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 -0.02. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

KBUF charges 1.01% per year while QQQ charges 0.18%. On a $10,000 position that is $101 vs $18 annually, a gap of $83 per year that compounds over a long holding period. On income, KBUF currently yields 8.92% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

KBUF and QQQ share 0 holdings out of 104 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, KBUF or QQQ?

KBUF has an expense ratio of 1.01% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $83 per year of difference.

Which performed better, KBUF or QQQ?

Over the past year KBUF returned -5.26% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), KBUF annualized +9.25% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, KBUF or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 12.7% for KBUF. Worst drawdown: KBUF -21.1% vs QQQ -83.0%.

Should I hold both KBUF and QQQ?

KBUF and QQQ have a monthly-return correlation of -0.02, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between KBUF and QQQ?

KBUF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.

Which pays a higher dividend, KBUF or QQQ?

KBUF yields 8.92% while QQQ yields 0.41%, so KBUF currently pays the higher dividend yield.

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