BGT vs QQQ
BGT vs QQQ
BlackRock Floating Rate Income Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. BGT offers more diversification with 233 holdings.
Side-by-Side Comparison
| Metric | BGT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.10% | 0.18% | |
| AUM | $331M | $455.8B | |
| Dividend Yield | 12.94% | 0.41% | |
| Holdings | 485 | 108 | |
| YTD Return | +4.24% | +17.27% | |
| 1Y Return | -0.90% | +28.64% | |
| 3Y Return (annualized) | +9.36% | +24.88% | |
| 5Y Return (annualized) | +6.92% | +14.86% | |
| Volatility (annualized) | 14.1% | 30.6% | |
| Max Drawdown | -64.1% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 30, 2004 | Mar 10, 1999 |
BGT vs QQQ Performance
BlackRock Floating Rate Income Trust (BGT) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BGT returned -0.90% while QQQ returned +28.64%. Year to date, BGT is up 4.24% versus a gain of 17.27% for QQQ.
Over three years, BGT compounded at +9.36% per year against +24.88% for QQQ; over five years the annualized figures are +6.92% and +14.86% respectively. Across the full 22-year window we track, QQQ has the edge at +13.08% annualized vs -0.31%. 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 14.1% for BGT. 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 -64.1% for BGT 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BGT charges 2.10% per year while QQQ charges 0.18%. On a $10,000 position that is $210 vs $18 annually, a gap of $192 per year that compounds over a long holding period. On income, BGT currently yields 12.94% against 0.41% for QQQ.
Holdings Overlap
BGT and QQQ share 0 holdings out of 336 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, BGT or QQQ?
BGT has an expense ratio of 2.10% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $192 per year of difference.
Which performed better, BGT or QQQ?
Over the past year BGT returned -0.90% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (22 years), BGT annualized -0.31% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, BGT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.1% for BGT. Worst drawdown: BGT -64.1% vs QQQ -83.0%.
Should I hold both BGT and QQQ?
BGT and QQQ have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BGT and QQQ?
BGT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 336 unique securities.
Which pays a higher dividend, BGT or QQQ?
BGT yields 12.94% while QQQ yields 0.41%, so BGT currently pays the higher dividend yield.
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