BBMC vs QQQ

Quick Verdict

BBMC has a lower expense ratio. BBMC delivered stronger 1-year returns. BBMC offers more diversification with 456 holdings.

Lower Fees: BBMCHigher Returns: BBMCMore Diversified: BBMC

Side-by-Side Comparison

MetricBBMCQQQWinner
Expense Ratio0.07%0.18%
AUM$2.1B$455.8B
Dividend Yield1.31%0.41%
Holdings560108
YTD Return+18.66%+18.34%
1Y Return+30.24%+28.94%
3Y Return (annualized)+17.89%+25.28%
5Y Return (annualized)+9.10%+15.22%
Volatility (annualized)18.6%30.6%
Max Drawdown-30.1%-83.0%
Fund FamilyJ.P. Morgan Asset ManagementInvesco (US)
CategoryEquityEquity
InceptionApr 14, 2020Mar 10, 1999

BBMC vs QQQ Performance

JPMorgan BetaBuilders US Mid Cap Equity ETF (BBMC) is a ETF from J.P. Morgan Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BBMC returned +30.24% while QQQ returned +28.94%. Year to date, BBMC is up 18.66% versus a gain of 18.34% for QQQ.

Over three years, BBMC compounded at +17.89% per year against +25.28% for QQQ; over five years the annualized figures are +9.10% and +15.22% respectively. Across the full 6-year window we track, BBMC has the edge at +17.69% annualized vs +13.12%. 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 18.6% for BBMC. 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 -30.1% for BBMC 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 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BBMC charges 0.07% per year while QQQ charges 0.18%. On a $10,000 position that is $7 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, BBMC currently yields 1.31% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

BBMC and QQQ share 0 holdings out of 559 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, BBMC or QQQ?

BBMC has an expense ratio of 0.07% while QQQ charges 0.18%. BBMC is the cheaper option. On a $10,000 investment, that is $11 per year of difference.

Which performed better, BBMC or QQQ?

Over the past year BBMC returned +30.24% vs +28.94% for QQQ, so BBMC leads on 1-year performance. Over the longest common window we track (6 years), BBMC annualized +17.69% vs +13.12% for QQQ. Past performance does not guarantee future results.

Which is riskier, BBMC or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 18.6% for BBMC. Worst drawdown: BBMC -30.1% vs QQQ -83.0%.

Should I hold both BBMC and QQQ?

BBMC and QQQ have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BBMC and QQQ?

BBMC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.

Which pays a higher dividend, BBMC or QQQ?

BBMC yields 1.31% while QQQ yields 0.41%, so BBMC currently pays the higher dividend yield.

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