GVI vs QQQ

GVI vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. GVI offers more diversification with 6,117 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: GVI

Side-by-Side Comparison

MetricGVIQQQWinner
Expense Ratio0.20%0.18%
AUM$3.8B$496.3B
Dividend Yield3.64%0.44%
Holdings6,117108
YTD Return-1.89%+16.64%
1Y Return-0.10%+27.27%
3Y Return (annualized)+3.84%+25.96%
5Y Return (annualized)+0.42%+14.54%
Volatility (annualized)25.2%30.6%
Max Drawdown-39.1%-83.0%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionJan 5, 2007Mar 10, 1999

GVI vs QQQ Performance

iShares Intermediate Government/Credit Bond ETF (GVI) 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 GVI returned -0.10% while QQQ returned +27.27%. Year to date, GVI is down 1.89% versus a gain of 16.64% for QQQ.

Over three years, GVI compounded at +3.84% per year against +25.96% for QQQ; over five years the annualized figures are +0.42% and +14.54% respectively. Across the full 20-year window we track, QQQ has the edge at +13.03% annualized vs +2.74%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 25.2% for GVI. 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 -39.1% for GVI 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 -0.02. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

GVI charges 0.20% per year while QQQ charges 0.18%. On a $10,000 position that is $20 vs $18 annually, a gap of $2 per year that compounds over a long holding period. On income, GVI currently yields 3.64% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

GVI and QQQ share 1 holdings out of 2262 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in GVIWeight in QQQDifference
TMUS0.04%0.82%0.78%

Frequently Asked Questions

Which is cheaper, GVI or QQQ?

GVI has an expense ratio of 0.20% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, GVI or QQQ?

Over the past year GVI returned -0.10% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), GVI annualized +2.74% vs +13.03% for QQQ. Past performance does not guarantee future results.

Which is riskier, GVI or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 25.2% for GVI. Worst drawdown: GVI -39.1% vs QQQ -83.0%.

Should I hold both GVI and QQQ?

GVI and QQQ have a monthly-return correlation of -0.02, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between GVI and QQQ?

GVI and QQQ share 1 common holdings with a 0.0% weight overlap. Combined, they hold 2262 unique securities.

Which pays a higher dividend, GVI or QQQ?

GVI yields 3.64% while QQQ yields 0.44%, so GVI currently pays the higher dividend yield.

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