BNDX vs QQQ

Quick Verdict

BNDX has a lower expense ratio. QQQ delivered stronger 1-year returns. BNDX offers more diversification with 1269 holdings.

Lower Fees: BNDXHigher Returns: QQQMore Diversified: BNDX

Side-by-Side Comparison

MetricBNDXQQQWinner
Expense Ratio0.07%0.18%
AUM$83.0B$455.8B
Dividend Yield4.45%0.41%
Holdings13,626108
YTD Return+0.66%+18.34%
1Y Return+1.14%+28.94%
3Y Return (annualized)+4.21%+25.28%
5Y Return (annualized)-0.04%+15.22%
Volatility (annualized)4.1%30.6%
Max Drawdown-17.2%-83.0%
Fund FamilyVanguard (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionMay 31, 2013Mar 10, 1999

BNDX vs QQQ Performance

Vanguard Total International Bond ETF (BNDX) is a ETF from Vanguard (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BNDX returned +1.14% while QQQ returned +28.94%. Year to date, BNDX is up 0.66% versus a gain of 18.34% for QQQ.

Over three years, BNDX compounded at +4.21% per year against +25.28% for QQQ; over five years the annualized figures are -0.04% and +15.22% respectively. Across the full 13-year window we track, QQQ has the edge at +13.12% annualized vs +1.10%. 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 4.1% for BNDX. 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 -17.2% for BNDX 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BNDX charges 0.07% per year while QQQ charges 0.18%. On a $10,000 position that is $7 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, BNDX currently yields 4.45% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

BNDX and QQQ share 0 holdings out of 1372 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, BNDX or QQQ?

BNDX has an expense ratio of 0.07% while QQQ charges 0.18%. BNDX is the cheaper option. On a $10,000 investment, that is $11 per year of difference.

Which performed better, BNDX or QQQ?

Over the past year BNDX returned +1.14% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), BNDX annualized +1.10% vs +13.12% for QQQ. Past performance does not guarantee future results.

Which is riskier, BNDX or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 4.1% for BNDX. Worst drawdown: BNDX -17.2% vs QQQ -83.0%.

Should I hold both BNDX and QQQ?

BNDX and QQQ have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BNDX and QQQ?

BNDX and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1372 unique securities.

Which pays a higher dividend, BNDX or QQQ?

BNDX yields 4.45% while QQQ yields 0.41%, so BNDX currently pays the higher dividend yield.

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