KBWB vs QQQ
Invesco KBW Bank ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. KBWB delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | KBWB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $7.0B | $496.3B | |
| Dividend Yield | 1.94% | 0.44% | |
| Holdings | 30 | 108 | |
| YTD Return | +12.79% | +16.64% | |
| 1Y Return | +32.52% | +27.27% | |
| 3Y Return (annualized) | +36.48% | +25.96% | |
| 5Y Return (annualized) | +11.05% | +14.54% | |
| Volatility (annualized) | 23.9% | 30.6% | |
| Max Drawdown | -52.0% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 1, 2011 | Mar 10, 1999 |
KBWB vs QQQ Performance
Invesco KBW Bank ETF (KBWB) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KBWB returned +32.52% while QQQ returned +27.27%. Year to date, KBWB is up 12.79% versus a gain of 16.64% for QQQ.
Over three years, KBWB compounded at +36.48% per year against +25.96% for QQQ; over five years the annualized figures are +11.05% and +14.54% respectively. Across the full 15-year window we track, QQQ has the edge at +13.03% annualized vs +12.31%. 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 23.9% for KBWB. 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 -52.0% for KBWB 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KBWB charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, KBWB currently yields 1.94% against 0.44% for QQQ.
Holdings Overlap
KBWB and QQQ share 0 holdings out of 127 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, KBWB or QQQ?
KBWB has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, KBWB or QQQ?
Over the past year KBWB returned +32.52% vs +27.27% for QQQ, so KBWB leads on 1-year performance. Over the longest common window we track (15 years), KBWB annualized +12.31% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, KBWB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 23.9% for KBWB. Worst drawdown: KBWB -52.0% vs QQQ -83.0%.
Should I hold both KBWB and QQQ?
KBWB and QQQ have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KBWB and QQQ?
KBWB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 127 unique securities.
Which pays a higher dividend, KBWB or QQQ?
KBWB yields 1.94% while QQQ yields 0.44%, so KBWB currently pays the higher dividend yield.
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