GOVZ vs QQQ
iShares 25+ Year Treasury STRIPS Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
GOVZ has a lower expense ratio. GOVZ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | GOVZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.18% | |
| AUM | $301M | $496.3B | |
| Dividend Yield | 5.14% | 0.44% | |
| Holdings | 22 | 108 | |
| YTD Return | +261.11% | +16.64% | |
| 1Y Return | +268.08% | +27.27% | |
| 3Y Return (annualized) | +48.24% | +25.96% | |
| 5Y Return (annualized) | +11.98% | +14.54% | |
| Volatility (annualized) | 126.3% | 30.6% | |
| Max Drawdown | -59.6% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 22, 2020 | Mar 10, 1999 |
GOVZ vs QQQ Performance
iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year GOVZ returned +268.08% while QQQ returned +27.27%. Year to date, GOVZ is up 261.11% versus a gain of 16.64% for QQQ.
Over three years, GOVZ compounded at +48.24% per year against +25.96% for QQQ; over five years the annualized figures are +11.98% and +14.54% respectively. Across the full 6-year window we track, QQQ has the edge at +13.03% annualized vs +8.02%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GOVZ has been the more volatile fund, with annualized monthly volatility of 126.3% compared with 30.6% for QQQ. 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 -59.6% for GOVZ and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GOVZ charges 0.10% per year while QQQ charges 0.18%. On a $10,000 position that is $10 vs $18 annually, a gap of $8 per year that compounds over a long holding period. On income, GOVZ currently yields 5.14% against 0.44% for QQQ.
Holdings Overlap
GOVZ and QQQ share 0 holdings out of 120 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GOVZ or QQQ?
GOVZ has an expense ratio of 0.10% while QQQ charges 0.18%. GOVZ is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, GOVZ or QQQ?
Over the past year GOVZ returned +268.08% vs +27.27% for QQQ, so GOVZ leads on 1-year performance. Over the longest common window we track (6 years), GOVZ annualized +8.02% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, GOVZ or QQQ?
GOVZ has been the more volatile fund at 126.3% annualized versus 30.6% for QQQ. Worst drawdown: GOVZ -59.6% vs QQQ -83.0%.
Should I hold both GOVZ and QQQ?
GOVZ and QQQ have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GOVZ and QQQ?
GOVZ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 120 unique securities.
Which pays a higher dividend, GOVZ or QQQ?
GOVZ yields 5.14% while QQQ yields 0.44%, so GOVZ currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.