ETF Versus

BND vs QQQ

Vanguard Total Bond Market Index Fund vs Invesco QQQ Trust

Last updated: 2026-04-02

BND Vanguard

Vanguard Total Bond Market Index Fund (BND) is an exchange-traded fund issued by Vanguard that provides exposure to the broad U.S. investment-grade bond market. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.93%. Launched in 2007, the fund has a 19-year track record.

AUM: $150.4B ER: 0.03% Yield: 3.93% Since: Apr 3, 2007
QQQ Invesco

Invesco QQQ Trust (QQQ) is an exchange-traded fund issued by Invesco that provides exposure to large-cap U.S. growth stocks with above-average earnings potential. It charges a moderate expense ratio of 0.18%. The fund offers a modest dividend yield of 0.48%. Launched in 1999, the fund has a 27-year track record.

AUM: $363.1B ER: 0.18% Yield: 0.48% Since: Mar 10, 1999

Quick Verdict

BND is significantly cheaper at 0.03% vs 0.18% expense ratio, saving you approximately $297 per $10,000 invested over 10 years. Over the past year, QQQ has significantly outperformed with a 23.6% return vs -0.0%. Income investors may prefer BND for its higher yield (3.9% vs 0.5%).

Key Metrics

Metric BND QQQ
Expense Ratio 0.03% 0.18%
Dividend Yield 3.9% 0.5%
Fund Family Vanguard Invesco
Category US Aggregate Bond US Large Cap Growth

Performance Chart

Indexed to 100 at start (5-year comparison)

75 99 123 147 171 195 2021-04 2022-06 2023-09 2024-12 2026-04
BND -13.3%
QQQ +76.5%

Performance Comparison

Period BND QQQ Difference
1 Month -1.63% -3.91% +2.28%
3 Months -0.84% -4.70% +3.86%
6 Months -1.20% -3.13% +1.93%
YTD -0.84% -4.70% +3.86%
1 Year -0.03% +23.61% -23.64%
3 Years -0.73% +82.51% -83.24%
5 Years -13.29% +76.50% -89.79%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period BND Fees QQQ Fees You Save
$10.000 10 years $60 $357 $297
$10.000 20 years $258 $1.529 $1.271
$10.000 30 years $835 $4.912 $4.076
$50.000 10 years $299 $1.786 $1.486
$50.000 30 years $4.176 $24.558 $20.382
$100.000 30 years $8.352 $49.116 $40.764

Risk Metrics

Based on 5 years of daily returns

Metric BND QQQ
Annualized Volatility 6.0% 22.4%
Max Drawdown -21.7% -35.6%
Sharpe Ratio -1.19 0.42

Dividend Comparison

Metric BND QQQ
Annual Dividend (per share) $2.88 $2.81
Dividend Yield 3.92% 0.48%
Distribution Frequency Monthly Quarterly

Top Holdings

QQQ Top Holdings

NameWeight
NVIDIA CorporationNVDA8.55%
Apple Inc.AAPL7.67%
Microsoft CorporationMSFT5.56%
Amazon.com, Inc.AMZN4.49%
Tesla, Inc.TSLA3.79%
Walmart Inc.WMT3.48%
Meta Platforms, Inc.META3.26%
Alphabet Inc.GOOG3.13%
Broadcom Inc.AVGO2.99%

Which One Should You Choose?

Choose BND if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose QQQ if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose BND if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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