BSMT vs. QQQ

Last updated Jun 4, 2026

BSMT (Invesco BulletShares 2029 Municipal Bond ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - BSMT is a Municipal Bonds fund tracking the Invesco BulletShares Municipal Bond 2029 Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 5 years, BSMT returned -0.12%/yr vs 17.97%/yr for QQQ. At a 0.11 correlation, their price movements are largely independent. Both charge a 0.18% expense ratio.

Performance

BSMT vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco BulletShares 2029 Municipal Bond ETF (BSMT) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BSMT achieves a 0.98% return, which is significantly lower than QQQ's 21.30% return.

BSMT

• 1D: -0.04%
• 1M: 0.44%
• YTD: 0.98%
• 6M: 1.37%
• 1Y: 5.29%
• 3Y*: 3.19%
• 5Y*: -0.12%
• 10Y*: —

QQQ

• 1D: -0.26%
• 1M: 10.60%
• YTD: 21.30%
• 6M: 19.66%
• 1Y: 41.82%
• 3Y*: 28.78%
• 5Y*: 17.97%
• 10Y*: 21.94%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BSMT vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
BSMT Invesco BulletShares 2029 Municipal Bond ETF	0.98%	3.79%	0.38%	5.41%	-11.01%	1.42%	6.96%	-0.35%
QQQ Invesco QQQ ETF	21.30%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	12.10%

Correlation

The correlation between BSMT and QQQ is 0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.08
Correlation (3Y) Calculated over the trailing 3-year period	0.14
Correlation (5Y) Calculated over the trailing 5-year period	0.14
Correlation (All Time) Calculated using the full available price history since Sep 26, 2019	0.11

BSMT vs. QQQ - Sectors Allocation Comparison

Sectors	BSMT	QQQ
Financial Services	1.9%	0.2%
Consumer Cyclical	0.1%	12.3%
Basic Materials	-	1.1%
Communication Services	-	15.8%
Consumer Defensive	-	7.7%
Energy	-	0.6%
Healthcare	-	4.2%
Industrials	-	2.8%
Real Estate	-	0.1%
Technology	-	53.8%
Utilities	-	1.4%

Return for Risk

BSMT vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BSMT

BSMT Risk / Return Rank: 80
BSMT Sharpe Ratio Rank: 87
BSMT Sortino Ratio Rank: 93
BSMT Omega Ratio Rank: 93
BSMT Calmar Ratio Rank: 67
BSMT Martin Ratio Rank: 61

QQQ

QQQ Risk / Return Rank: 73
QQQ Sharpe Ratio Rank: 79
QQQ Sortino Ratio Rank: 75
QQQ Omega Ratio Rank: 74
QQQ Calmar Ratio Rank: 69
QQQ Martin Ratio Rank: 71

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BSMT vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco BulletShares 2029 Municipal Bond ETF (BSMT) and Invesco QQQ ETF (QQQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	BSMT	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.87	2.64	+0.24
Sortino ratio: Return per unit of downside risk	4.66	3.45	+1.22
Omega ratio: Gain probability vs. loss probability	1.65	1.45	+0.19
Calmar ratio: Return relative to maximum drawdown	3.33	3.51	-0.19
Martin ratio: Return relative to average drawdown	10.84	13.49	-2.66
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BSMT vs. QQQ - Sharpe Ratio Comparison

The current BSMT Sharpe Ratio is 2.87, which is comparable to the QQQ Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of BSMT and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BSMT	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.87	2.64	+0.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.03	0.81	-0.84
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.99	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.15	0.41	-0.26

Drawdowns

BSMT vs. QQQ - Drawdown Comparison

The maximum BSMT drawdown since its inception was -16.20%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for BSMT and QQQ.

Drawdown Indicators

	BSMT	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-16.20%	-82.97%	+66.77%
Max Drawdown (1Y) Largest decline over 1 year	-1.60%	-11.96%	+10.36%
Max Drawdown (3Y) Largest decline over 3 years	-4.79%	-22.77%	+17.98%
Max Drawdown (5Y) Largest decline over 5 years	-16.20%	-35.12%	+18.92%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.12%	—
Current Drawdown Current decline from peak	-2.05%	-0.26%	-1.79%
Average Drawdown Average peak-to-trough decline	-5.65%	-32.79%	+27.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.49%	3.11%	-2.62%

Volatility

BSMT vs. QQQ - Volatility Comparison

The current volatility for Invesco BulletShares 2029 Municipal Bond ETF (BSMT) is 0.62%, while Invesco QQQ ETF (QQQ) has a volatility of 4.49%. This indicates that BSMT experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BSMT	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.62%	4.49%	-3.87%
Volatility (6M) Calculated over the trailing 6-month period	1.22%	12.10%	-10.88%
Volatility (1Y) Calculated over the trailing 1-year period	1.85%	15.94%	-14.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.25%	22.38%	-18.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.42%	22.29%	-15.87%

BSMT vs. QQQ - Expense Ratio Comparison

Both BSMT and QQQ have an expense ratio of 0.18%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

BSMT vs. QQQ - Dividend Comparison

BSMT's dividend yield for the trailing twelve months is around 2.74%, more than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BSMT Invesco BulletShares 2029 Municipal Bond ETF	2.74%	2.78%	2.80%	2.62%	1.65%	1.31%	1.82%	0.48%	0.00%	0.00%	0.00%	0.00%
QQQ Invesco QQQ ETF	0.38%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both BSMT and QQQ in my portfolio?

BSMT and QQQ have a correlation of 0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BSMT or QQQ?

QQQ has higher volatility (4.49%) compared to BSMT (0.62%). In terms of maximum drawdown, BSMT dropped -16.20% vs QQQ's -82.97%.

Which ETF is better, BSMT or QQQ?

On 5-year performance, QQQ leads with 17.97% vs -0.12% for BSMT. Both ETFs have the same 0.18% expense ratio. On volatility, BSMT has been the lower-risk option at 0.62%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BSMT or QQQ?

Over the 5-year period, QQQ has performed better with a 17.97% return vs -0.12%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BSMT or QQQ?

BSMT and QQQ have the same expense ratio: 0.18% per year.

Which ETF pays a higher dividend yield, BSMT or QQQ?

BSMT has the higher dividend yield at 2.74%, compared with 0.38% for QQQ.

What is the main difference between BSMT and QQQ?

BSMT is categorized as Municipal Bonds, while QQQ is Nasdaq-100. BSMT tracks Invesco BulletShares Municipal Bond 2029 Index, while QQQ tracks NASDAQ-100 Index.

Which has better risk-adjusted returns?

BSMT currently has the higher Sharpe Ratio (2.87 vs 2.64), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.