BND vs QQQ
BND vs QQQ
Vanguard Total Bond Market ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
BND has a lower expense ratio. QQQ delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.
Side-by-Side Comparison
| Metric | BND | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.18% | |
| AUM | $159.8B | $455.8B | |
| Dividend Yield | 3.94% | 0.41% | |
| Holdings | 17,528 | 108 | |
| YTD Return | -0.50% | +12.48% | |
| 1Y Return | +2.63% | +22.35% | |
| 3Y Return (annualized) | +3.92% | +22.30% | |
| 5Y Return (annualized) | -0.47% | +14.24% | |
| Volatility (annualized) | 4.6% | 30.6% | |
| Max Drawdown | -19.6% | -83.0% | |
| Fund Family | Vanguard (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Mar 10, 1999 |
BND vs QQQ Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BND returned +2.63% while QQQ returned +22.35%. Year to date, BND is down 0.50% versus a gain of 12.48% for QQQ.
Over three years, BND compounded at +3.92% per year against +22.30% for QQQ; over five years the annualized figures are -0.47% and +14.24% respectively. Across the full 19-year window we track, QQQ has the edge at +12.91% annualized vs +0.68%. 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 4.6% for BND. 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 -19.6% for BND 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 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BND charges 0.03% per year while QQQ charges 0.18%. On a $10,000 position that is $3 vs $18 annually, a gap of $15 per year that compounds over a long holding period. On income, BND currently yields 3.94% against 0.41% for QQQ.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, BND or QQQ?
BND has an expense ratio of 0.03% while QQQ charges 0.18%. BND is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, BND or QQQ?
Over the past year BND returned +2.63% vs +22.35% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), BND annualized +0.68% vs +12.91% for QQQ. Past performance does not guarantee future results.
Which is riskier, BND or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs QQQ -83.0%.
Should I hold both BND and QQQ?
BND and QQQ have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BND and QQQ?
BND and QQQ share 2 common holdings with a 0.0% weight overlap. Combined, they hold 10891 unique securities.
Which pays a higher dividend, BND or QQQ?
BND yields 3.94% while QQQ yields 0.41%, so BND currently pays the higher dividend yield.
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