BSV vs QQQ
BSV vs QQQ
Vanguard Short-Term Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
BSV has a lower expense ratio. QQQ delivered stronger 1-year returns. BSV offers more diversification with 2787 holdings.
Side-by-Side Comparison
| Metric | BSV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.18% | |
| AUM | $44.8B | $455.8B | |
| Dividend Yield | 3.98% | 0.41% | |
| Holdings | 3,125 | 108 | |
| YTD Return | +0.40% | +17.27% | |
| 1Y Return | +2.33% | +28.64% | |
| 3Y Return (annualized) | +4.31% | +24.88% | |
| 5Y Return (annualized) | +1.55% | +14.86% | |
| Volatility (annualized) | 2.4% | 30.6% | |
| Max Drawdown | -9.0% | -83.0% | |
| Fund Family | Vanguard (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Mar 10, 1999 |
BSV vs QQQ Performance
Vanguard Short-Term Bond ETF (BSV) is a ETF from Vanguard (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BSV returned +2.33% while QQQ returned +28.64%. Year to date, BSV is up 0.40% versus a gain of 17.27% for QQQ.
Over three years, BSV compounded at +4.31% per year against +24.88% for QQQ; over five years the annualized figures are +1.55% and +14.86% respectively. Across the full 19-year window we track, QQQ has the edge at +13.08% annualized vs +0.91%. 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 2.4% for BSV. 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 -9.0% for BSV 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 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BSV 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, BSV currently yields 3.98% against 0.41% for QQQ.
Holdings Overlap
BSV and QQQ share 1 holdings out of 2889 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BSV | Weight in QQQ | Difference |
|---|---|---|---|
| KDP | 0.01% | 0.19% | 0.18% |
Frequently Asked Questions
Which is cheaper, BSV or QQQ?
BSV has an expense ratio of 0.03% while QQQ charges 0.18%. BSV is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, BSV or QQQ?
Over the past year BSV returned +2.33% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), BSV annualized +0.91% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, BSV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 2.4% for BSV. Worst drawdown: BSV -9.0% vs QQQ -83.0%.
Should I hold both BSV and QQQ?
BSV and QQQ have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSV and QQQ?
BSV and QQQ share 1 common holdings with a 0.0% weight overlap. Combined, they hold 2889 unique securities.
Which pays a higher dividend, BSV or QQQ?
BSV yields 3.98% while QQQ yields 0.41%, so BSV currently pays the higher dividend yield.
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