BNDS vs QQQ
BNDS vs QQQ
Infrastructure Capital Bond Income 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 | BNDS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.88% | 0.18% | |
| AUM | $94M | $455.8B | |
| Dividend Yield | 8.71% | 0.41% | |
| Holdings | 77 | 108 | |
| YTD Return | +3.88% | +12.48% | |
| 1Y Return | +9.12% | +22.35% | |
| 3Y Return (annualized) | - | +22.30% | |
| 5Y Return (annualized) | - | +14.24% | |
| Volatility (annualized) | 5.4% | 30.6% | |
| Max Drawdown | -7.0% | -83.0% | |
| Fund Family | InfraCap | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 15, 2025 | Mar 10, 1999 |
BNDS vs QQQ Performance
Infrastructure Capital Bond Income ETF (BNDS) is a ETF from InfraCap and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BNDS returned +9.12% while QQQ returned +22.35%. Year to date, BNDS is up 3.88% versus a gain of 12.48% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 5.4% for BNDS. 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 BNDS 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BNDS charges 0.88% per year while QQQ charges 0.18%. On a $10,000 position that is $88 vs $18 annually, a gap of $70 per year that compounds over a long holding period. On income, BNDS currently yields 8.71% against 0.41% for QQQ.
Holdings Overlap
BNDS and QQQ share 0 holdings out of 173 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, BNDS or QQQ?
BNDS has an expense ratio of 0.88% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, BNDS or QQQ?
Over the past year BNDS returned +9.12% vs +22.35% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), BNDS annualized +8.11% vs +12.91% for QQQ. Past performance does not guarantee future results.
Which is riskier, BNDS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.4% for BNDS. Worst drawdown: BNDS -7.0% vs QQQ -83.0%.
Should I hold both BNDS and QQQ?
BNDS and QQQ have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDS and QQQ?
BNDS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 173 unique securities.
Which pays a higher dividend, BNDS or QQQ?
BNDS yields 8.71% while QQQ yields 0.41%, so BNDS currently pays the higher dividend yield.
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