KBWB vs. QQQM

Last updated Jun 3, 2026

KBWB (Invesco KBW Bank ETF) and QQQM (Invesco NASDAQ 100 ETF) are both exchange-traded funds - KBWB is a Financials Equities fund tracking the KBW Nasdaq Bank Index, while QQQM is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 5 years, KBWB returned 7.99%/yr vs 18.52%/yr for QQQM. At a 0.46 correlation, their price movements are largely independent. KBWB charges 0.35%/yr vs 0.15%/yr for QQQM.

Performance

KBWB vs. QQQM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco KBW Bank ETF (KBWB) and Invesco NASDAQ 100 ETF (QQQM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KBWB achieves a 5.53% return, which is significantly lower than QQQM's 21.64% return.

KBWB

• 1D: 1.74%
• 1M: 1.83%
• YTD: 5.53%
• 6M: 12.68%
• 1Y: 37.99%
• 3Y*: 32.54%
• 5Y*: 7.99%
• 10Y*: 12.25%

QQQM

• 1D: 0.46%
• 1M: 10.70%
• YTD: 21.64%
• 6M: 20.29%
• 1Y: 43.37%
• 3Y*: 28.98%
• 5Y*: 18.52%
• 10Y*: —

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

KBWB vs. QQQM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
KBWB Invesco KBW Bank ETF	5.53%	32.05%	36.73%	-1.18%	-21.68%	37.72%	26.22%
QQQM Invesco NASDAQ 100 ETF	21.64%	20.85%	25.68%	55.01%	-32.52%	27.45%	6.67%

Correlation

The correlation between KBWB and QQQM is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.51
Correlation (All Time) Calculated using the full available price history since Oct 14, 2020	0.46

The correlation between KBWB and QQQM has been stable across timeframes, ranging from 0.42 to 0.51 - a consistent structural relationship.

KBWB vs. QQQM - Sectors Allocation Comparison

Sectors	KBWB	QQQM
Financial Services	100.0%	0.2%
Basic Materials	-	1.1%
Communication Services	-	15.8%
Consumer Cyclical	-	12.3%
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

KBWB vs. QQQM — Risk / Return Rank

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

KBWB

KBWB Risk / Return Rank: 50
KBWB Sharpe Ratio Rank: 55
KBWB Sortino Ratio Rank: 50
KBWB Omega Ratio Rank: 53
KBWB Calmar Ratio Rank: 46
KBWB Martin Ratio Rank: 44

QQQM

QQQM Risk / Return Rank: 77
QQQM Sharpe Ratio Rank: 83
QQQM Sortino Ratio Rank: 78
QQQM Omega Ratio Rank: 78
QQQM Calmar Ratio Rank: 73
QQQM Martin Ratio Rank: 74

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.

KBWB vs. QQQM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco KBW Bank ETF (KBWB) and Invesco NASDAQ 100 ETF (QQQM). 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.

	KBWB	QQQM	Difference
Sharpe ratio Return per unit of total volatility	1.91	2.74	-0.83
Sortino ratio Return per unit of downside risk	2.48	3.56	-1.08
Omega ratio Gain probability vs. loss probability	1.33	1.47	-0.14
Calmar ratio Return relative to maximum drawdown	2.31	3.72	-1.41
Martin ratio Return relative to average drawdown	7.29	14.29	-7.00
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KBWB vs. QQQM - Sharpe Ratio Comparison

The current KBWB Sharpe Ratio is 1.91, which is lower than the QQQM Sharpe Ratio of 2.74. The chart below compares the historical Sharpe Ratios of KBWB and QQQM, 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

	KBWB	QQQM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.91	2.74	-0.83
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	0.84	-0.54
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.42	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.85	-0.35

Drawdowns

KBWB vs. QQQM - Drawdown Comparison

The maximum KBWB drawdown since its inception was -50.27%, which is greater than QQQM's maximum drawdown of -35.04%. Use the drawdown chart below to compare losses from any high point for KBWB and QQQM.

Drawdown Indicators

	KBWB	QQQM	Difference
Max Drawdown Largest peak-to-trough decline	-50.27%	-35.04%	-15.23%
Max Drawdown (1Y) Largest decline over 1 year	-16.38%	-11.96%	-4.42%
Max Drawdown (3Y) Largest decline over 3 years	-25.43%	-22.70%	-2.73%
Max Drawdown (5Y) Largest decline over 5 years	-49.31%	-35.04%	-14.27%
Max Drawdown (10Y) Largest decline over 10 years	-50.27%	—	—
Current Drawdown Current decline from peak	-1.92%	0.00%	-1.92%
Average Drawdown Average peak-to-trough decline	-11.75%	-8.26%	-3.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.20%	3.11%	+2.09%

Volatility

KBWB vs. QQQM - Volatility Comparison

Invesco KBW Bank ETF (KBWB) has a higher volatility of 5.24% compared to Invesco NASDAQ 100 ETF (QQQM) at 4.47%. This indicates that KBWB's price experiences larger fluctuations and is considered to be riskier than QQQM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KBWB	QQQM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.24%	4.47%	+0.77%
Volatility (6M) Calculated over the trailing 6-month period	15.42%	12.06%	+3.36%
Volatility (1Y) Calculated over the trailing 1-year period	20.01%	15.92%	+4.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.62%	22.24%	+4.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.20%	22.13%	+7.07%

KBWB vs. QQQM - Expense Ratio Comparison

KBWB has a 0.35% expense ratio, which is higher than QQQM's 0.15% expense ratio.

Dividends

KBWB vs. QQQM - Dividend Comparison

KBWB's dividend yield for the trailing twelve months is around 2.03%, more than QQQM's 0.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KBWB Invesco KBW Bank ETF	2.03%	2.04%	2.46%	3.20%	3.05%	2.13%	2.62%	2.38%	2.54%	1.35%	1.53%	1.53%
QQQM Invesco NASDAQ 100 ETF	0.41%	0.50%	0.61%	0.65%	0.83%	0.40%	0.16%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both KBWB and QQQM in my portfolio?

KBWB and QQQM have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KBWB or QQQM?

KBWB has higher volatility (5.24%) compared to QQQM (4.47%). In terms of maximum drawdown, KBWB dropped -50.27% vs QQQM's -35.04%.

Which ETF is better, KBWB or QQQM?

On 5-year performance, QQQM leads with 18.52% vs 7.99% for KBWB. On fees, QQQM is cheaper at 0.15% per year. On volatility, QQQM has been the lower-risk option at 4.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KBWB or QQQM?

Over the 5-year period, QQQM has performed better with a 18.52% return vs 7.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KBWB or QQQM?

QQQM is cheaper with a 0.15% expense ratio, compared with 0.35% for KBWB.

Which ETF pays a higher dividend yield, KBWB or QQQM?

KBWB has the higher dividend yield at 2.03%, compared with 0.41% for QQQM.

What is the main difference between KBWB and QQQM?

KBWB is categorized as Financials Equities, while QQQM is Nasdaq-100. KBWB tracks KBW Nasdaq Bank Index, while QQQM tracks NASDAQ-100 Index. Their fees differ too: 0.35% for KBWB and 0.15% for QQQM.

Which has better risk-adjusted returns?

QQQM currently has the higher Sharpe Ratio (2.74 vs 1.91), 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.