AGG vs QQQ
iShares Core US Aggregate Bond ETF vs Invesco QQQ Trust, Series 1
Which is better, AGG or QQQ?
QQQ has been ahead.
AGG has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | AGG | QQQ |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.18% |
| AUM | $137.6B | $483.5B |
| Dividend Yield | 4.05% | 0.44% |
| Holdings | 13,269 | 107 |
| YTD Return | -1.27% | +16.87%Best |
| 1Y Return | -0.75% | +22.98%Best |
| 3Y Return (annualized) | +3.99% | +24.98%Best |
| 5Y Return (annualized) | -0.53% | +14.39%Best |
| Volatility (annualized) | 4.4%Best | 18.2% |
| Max Drawdown | -18.4%Best | -53.5% |
| $10,000 over 5 years | $9,738 | $19,586Best |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Growth |
| Inception | Sep 22, 2003 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 26, 2003 to Sep 11, 2026 (23 years).
AGG vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
AGG vs QQQ Performance
iShares Core US Aggregate Bond ETF (AGG) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year AGG returned -0.75% while QQQ returned +22.98%. Year to date, AGG is down 1.27% versus a gain of 16.87% for QQQ.
Over three years, AGG compounded at +3.99% per year against +24.98% for QQQ; over five years the annualized figures are -0.53% and +14.39% respectively. Across the full 23-year window we track, QQQ has the edge at +14.56% annualized vs +2.96%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.2% compared with 4.4% for AGG. 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 -18.4% for AGG and -53.5% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.21. They move largely independently of each other.
Fees and Cost Over Time
AGG 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, AGG currently yields 4.05% against 0.44% for QQQ.
Holdings Overlap
At least 2.7% of QQQ's money is in holdings AGG also owns.
Stated as a floor: for AGG, our book for it covers 70.7% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
QQQ and AGG share little of their money.
3 positions in common, counted across the 11,344 positions we hold weights for in AGG and 102 in QQQ, against full books of 13,269 and 107.
You are not choosing between two funds in isolation.
Whichever of AGG and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, AGG or QQQ?
AGG has an expense ratio of 0.03% while QQQ charges 0.18%. AGG is the cheaper option, by $15 a year on a $10,000 investment.
Which performed better, AGG or QQQ?
Over the past year AGG returned -0.75% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), AGG annualized +2.96% vs +14.56% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AGG or QQQ?
QQQ has been the more volatile fund at 18.2% annualized versus 4.4% for AGG. Worst drawdown: AGG -18.4% vs QQQ -53.5%.
Should I hold both AGG and QQQ?
AGG and QQQ have a monthly-return correlation of 0.21, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between AGG and QQQ?
At least 2.7% of QQQ's money is in holdings AGG also owns. Our book for AGG is partial, so the real figure is this or higher. They hold 3 positions in common, counted across the 11,344 positions we hold weights for in AGG and 102 in QQQ.
Which pays a higher dividend, AGG or QQQ?
AGG yields 4.05% while QQQ yields 0.44%, so AGG currently pays the higher dividend yield.
Is QQQ better than AGG?
AGG has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.