BNDI vs QQQ
BNDI vs QQQ
NEOS Enhanced Income Aggregate Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | BNDI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.18% | |
| AUM | $185M | $455.8B | |
| Dividend Yield | 5.81% | 0.41% | |
| Holdings | 9 | 108 | |
| YTD Return | +1.44% | +17.27% | |
| 1Y Return | +4.38% | +28.64% | |
| 3Y Return (annualized) | +5.16% | +24.88% | |
| 5Y Return (annualized) | - | +14.86% | |
| Volatility (annualized) | 6.3% | 30.6% | |
| Max Drawdown | -7.0% | -83.0% | |
| Fund Family | NEOS | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 30, 2022 | Mar 10, 1999 |
BNDI vs QQQ Performance
NEOS Enhanced Income Aggregate Bond ETF (BNDI) is a ETF from NEOS and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BNDI returned +4.38% while QQQ returned +28.64%. Year to date, BNDI is up 1.44% versus a gain of 17.27% for QQQ.
Over three years, BNDI compounded at +5.16% per year against +24.88% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.08% annualized vs +3.84%. 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 6.3% for BNDI. 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 -7.0% for BNDI 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BNDI charges 0.58% per year while QQQ charges 0.18%. On a $10,000 position that is $58 vs $18 annually, a gap of $40 per year that compounds over a long holding period. On income, BNDI currently yields 5.81% against 0.41% for QQQ.
Holdings Overlap
BNDI and QQQ share 0 holdings out of 105 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, BNDI or QQQ?
BNDI has an expense ratio of 0.58% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, BNDI or QQQ?
Over the past year BNDI returned +4.38% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), BNDI annualized +3.84% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, BNDI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.3% for BNDI. Worst drawdown: BNDI -7.0% vs QQQ -83.0%.
Should I hold both BNDI and QQQ?
BNDI and QQQ have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDI and QQQ?
BNDI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, BNDI or QQQ?
BNDI yields 5.81% while QQQ yields 0.41%, so BNDI currently pays the higher dividend yield.
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