BIT vs QQQ
BIT vs QQQ
BlackRock Multi-Sector Income Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. BIT offers more diversification with 955 holdings.
Side-by-Side Comparison
| Metric | BIT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 4.26% | 0.18% | |
| AUM | $746M | $455.8B | |
| Dividend Yield | 11.16% | 0.41% | |
| Holdings | 1,589 | 108 | |
| YTD Return | +0.41% | +16.83% | |
| 1Y Return | -6.72% | +26.58% | |
| 3Y Return (annualized) | +3.92% | +24.70% | |
| 5Y Return (annualized) | +1.72% | +14.88% | |
| Volatility (annualized) | 13.1% | 30.6% | |
| Max Drawdown | -53.3% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2013 | Mar 10, 1999 |
BIT vs QQQ Performance
BlackRock Multi-Sector Income Trust (BIT) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BIT returned -6.72% while QQQ returned +26.58%. Year to date, BIT is up 0.41% versus a gain of 16.83% for QQQ.
Over three years, BIT compounded at +3.92% per year against +24.70% for QQQ; over five years the annualized figures are +1.72% and +14.88% respectively. Across the full 13-year window we track, QQQ has the edge at +13.06% annualized vs +0.42%. 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 13.1% for BIT. 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 -53.3% for BIT 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIT charges 4.26% per year while QQQ charges 0.18%. On a $10,000 position that is $426 vs $18 annually, a gap of $408 per year that compounds over a long holding period. On income, BIT currently yields 11.16% against 0.41% for QQQ.
Holdings Overlap
BIT and QQQ share 0 holdings out of 1058 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, BIT or QQQ?
BIT has an expense ratio of 4.26% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $408 per year of difference.
Which performed better, BIT or QQQ?
Over the past year BIT returned -6.72% vs +26.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), BIT annualized +0.42% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, BIT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.1% for BIT. Worst drawdown: BIT -53.3% vs QQQ -83.0%.
Should I hold both BIT and QQQ?
BIT and QQQ have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIT and QQQ?
BIT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1058 unique securities.
Which pays a higher dividend, BIT or QQQ?
BIT yields 11.16% while QQQ yields 0.41%, so BIT currently pays the higher dividend yield.
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