NBSM vs QQQ
Neuberger Berman Small-Mid Cap 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 | NBSM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.18% | |
| AUM | $119M | $496.3B | |
| Dividend Yield | 0.36% | 0.44% | |
| Holdings | 74 | 108 | |
| YTD Return | +15.87% | +16.64% | |
| 1Y Return | +15.46% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 14.9% | 30.6% | |
| Max Drawdown | -25.2% | -83.0% | |
| Fund Family | Neuberger Berman | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 20, 2024 | Mar 10, 1999 |
NBSM vs QQQ Performance
Neuberger Berman Small-Mid Cap ETF (NBSM) is a ETF from Neuberger Berman and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NBSM returned +15.46% while QQQ returned +27.27%. Year to date, NBSM is up 15.87% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 14.9% for NBSM. 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 -25.2% for NBSM 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NBSM charges 0.65% per year while QQQ charges 0.18%. On a $10,000 position that is $65 vs $18 annually, a gap of $47 per year that compounds over a long holding period. On income, NBSM currently yields 0.36% against 0.44% for QQQ.
Holdings Overlap
NBSM and QQQ share 0 holdings out of 180 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, NBSM or QQQ?
NBSM has an expense ratio of 0.65% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, NBSM or QQQ?
Over the past year NBSM returned +15.46% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), NBSM annualized +6.50% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, NBSM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.9% for NBSM. Worst drawdown: NBSM -25.2% vs QQQ -83.0%.
Should I hold both NBSM and QQQ?
NBSM and QQQ have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NBSM and QQQ?
NBSM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 180 unique securities.
Which pays a higher dividend, NBSM or QQQ?
NBSM yields 0.36% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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