QQQ vs TBJL

QQQ vs TBJL
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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

MetricQQQTBJLWinner
Expense Ratio0.18%0.79%
AUM$496.3B$11M
Dividend Yield0.44%0.00%
Holdings1086
YTD Return+15.47%-4.43%
1Y Return+24.44%-3.11%
3Y Return (annualized)+25.47%-0.75%
5Y Return (annualized)+14.22%-4.74%
Volatility (annualized)30.6%9.7%
Max Drawdown-83.0%-29.4%
Fund FamilyInvesco (US)Innovator ETFs Trust
CategoryEquityAlternative
InceptionMar 10, 1999Aug 18, 2020

QQQ vs TBJL Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Innovator 20+ Year Treasury Bond 9 Buffer ETF - July (TBJL) is a ETF from Innovator ETFs Trust. Over the past year QQQ returned +24.44% while TBJL returned -3.11%. Year to date, QQQ is up 15.47% versus a loss of 4.43% for TBJL.

Over three years, QQQ compounded at +25.47% per year against -0.75% for TBJL; over five years the annualized figures are +14.22% and -4.74% respectively. Across the full 6-year window we track, QQQ has the edge at +12.99% annualized vs -4.48%. 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 9.7% for TBJL. 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 -83.0% for QQQ and -29.4% for TBJL. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while TBJL charges 0.79%. On a $10,000 position that is $18 vs $79 annually, a gap of $61 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.00% for TBJL.

Frequently Asked Questions

Which is cheaper, QQQ or TBJL?

QQQ has an expense ratio of 0.18% while TBJL charges 0.79%. QQQ is the cheaper option. On a $10,000 investment, that is $61 per year of difference.

Which performed better, QQQ or TBJL?

Over the past year QQQ returned +24.44% vs -3.11% for TBJL, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), QQQ annualized +12.99% vs -4.48% for TBJL. Past performance does not guarantee future results.

Which is riskier, QQQ or TBJL?

QQQ has been the more volatile fund at 30.6% annualized versus 9.7% for TBJL. Worst drawdown: QQQ -83.0% vs TBJL -29.4%.

Should I hold both QQQ and TBJL?

QQQ and TBJL have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, QQQ or TBJL?

QQQ yields 0.44% while TBJL yields 0.00%, so QQQ currently pays the higher dividend yield.

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