BSMW vs. QQQ

Last updated Jun 4, 2026

BSMW (Invesco BulletShares 2032 Municipal Bond ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - BSMW is a Municipal Bonds fund tracking the Invesco BulletShares USD Municipal Bond 2032 Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 3 years, BSMW returned 3.20%/yr vs 28.78%/yr for QQQ. At a 0.05 correlation, their price movements are largely independent. Both charge a 0.18% expense ratio.

Performance

BSMW vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco BulletShares 2032 Municipal Bond ETF (BSMW) 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, BSMW achieves a 1.30% return, which is significantly lower than QQQ's 21.30% return.

BSMW

• 1D: 0.11%
• 1M: 0.55%
• YTD: 1.30%
• 6M: 1.59%
• 1Y: 6.93%
• 3Y*: 3.20%
• 5Y*: —
• 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)

BSMW vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
BSMW Invesco BulletShares 2032 Municipal Bond ETF	1.30%	3.42%	-0.35%	7.00%
QQQ Invesco QQQ ETF	21.30%	20.77%	25.58%	41.60%

Correlation

The correlation between BSMW and QQQ is 0.12, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.12
Correlation (3Y) Calculated over the trailing 3-year period	0.08
Correlation (All Time) Calculated using the full available price history since Mar 2, 2023	0.05

BSMW vs. QQQ - Sectors Allocation Comparison

Sectors	BSMW	QQQ
Financial Services	1.7%	0.2%
Consumer Cyclical	0.3%	12.3%
Technology	0.1%	53.8%
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%
Utilities	-	1.4%

Return for Risk

BSMW vs. QQQ — Risk / Return Rank

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

BSMW

BSMW Risk / Return Rank: 67
BSMW Sharpe Ratio Rank: 78
BSMW Sortino Ratio Rank: 80
BSMW Omega Ratio Rank: 83
BSMW Calmar Ratio Rank: 49
BSMW Martin Ratio Rank: 46

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.

BSMW vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco BulletShares 2032 Municipal Bond ETF (BSMW) 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.

	BSMW	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.48	2.64	-0.16
Sortino ratio: Return per unit of downside risk	3.56	3.45	+0.11
Omega ratio: Gain probability vs. loss probability	1.50	1.45	+0.05
Calmar ratio: Return relative to maximum drawdown	2.39	3.51	-1.12
Martin ratio: Return relative to average drawdown	7.53	13.49	-5.96
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BSMW vs. QQQ - Sharpe Ratio Comparison

The current BSMW Sharpe Ratio is 2.48, which is comparable to the QQQ Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of BSMW 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

	BSMW	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.48	2.64	-0.16
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.81	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.99	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.69	0.41	+0.28

Drawdowns

BSMW vs. QQQ - Drawdown Comparison

The maximum BSMW drawdown since its inception was -7.57%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for BSMW and QQQ.

Drawdown Indicators

	BSMW	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-7.57%	-82.97%	+75.40%
Max Drawdown (1Y) Largest decline over 1 year	-2.92%	-11.96%	+9.04%
Max Drawdown (3Y) Largest decline over 3 years	-7.34%	-22.77%	+15.43%
Max Drawdown (5Y) Largest decline over 5 years	—	-35.12%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.12%	—
Current Drawdown Current decline from peak	-0.98%	-0.26%	-0.72%
Average Drawdown Average peak-to-trough decline	-1.72%	-32.79%	+31.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.92%	3.11%	-2.19%

Volatility

BSMW vs. QQQ - Volatility Comparison

The current volatility for Invesco BulletShares 2032 Municipal Bond ETF (BSMW) is 0.93%, while Invesco QQQ ETF (QQQ) has a volatility of 4.49%. This indicates that BSMW 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

	BSMW	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.93%	4.49%	-3.56%
Volatility (6M) Calculated over the trailing 6-month period	1.98%	12.10%	-10.12%
Volatility (1Y) Calculated over the trailing 1-year period	2.82%	15.94%	-13.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.00%	22.38%	-17.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.00%	22.29%	-17.29%

BSMW vs. QQQ - Expense Ratio Comparison

Both BSMW 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

BSMW vs. QQQ - Dividend Comparison

BSMW's dividend yield for the trailing twelve months is around 3.20%, more than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BSMW Invesco BulletShares 2032 Municipal Bond ETF	3.20%	3.24%	3.48%	2.36%	0.00%	0.00%	0.00%	0.00%	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 BSMW and QQQ in my portfolio?

BSMW and QQQ have a correlation of 0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BSMW or QQQ?

QQQ has higher volatility (4.49%) compared to BSMW (0.93%). In terms of maximum drawdown, BSMW dropped -7.57% vs QQQ's -82.97%.

Which ETF is better, BSMW or QQQ?

On 3-year performance, QQQ leads with 28.78% vs 3.20% for BSMW. Both ETFs have the same 0.18% expense ratio. On volatility, BSMW has been the lower-risk option at 0.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BSMW or QQQ?

Over the 3-year period, QQQ has performed better with a 28.78% return vs 3.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BSMW or QQQ?

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

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

BSMW has the higher dividend yield at 3.20%, compared with 0.38% for QQQ.

What is the main difference between BSMW and QQQ?

BSMW is categorized as Municipal Bonds, while QQQ is Nasdaq-100. BSMW tracks Invesco BulletShares USD Municipal Bond 2032 Index, while QQQ tracks NASDAQ-100 Index.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.64 vs 2.48), 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.