IAGG vs QQQ
iShares Core International Aggregate Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IAGG has a lower expense ratio. QQQ delivered stronger 1-year returns. IAGG offers more diversification with 384 holdings.
Side-by-Side Comparison
| Metric | IAGG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.18% | |
| AUM | $10.9B | $455.8B | |
| Dividend Yield | 3.63% | 0.41% | |
| Holdings | 8,021 | 108 | |
| YTD Return | -0.28% | +18.31% | |
| 1Y Return | -2.31% | +25.37% | |
| 3Y Return (annualized) | +3.22% | +25.79% | |
| 5Y Return (annualized) | -0.04% | +15.20% | |
| Volatility (annualized) | 4.1% | 30.6% | |
| Max Drawdown | -13.9% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 10, 2015 | Mar 10, 1999 |
IAGG vs QQQ Performance
iShares Core International Aggregate Bond ETF (IAGG) 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 IAGG returned -2.31% while QQQ returned +25.37%. Year to date, IAGG is down 0.28% versus a gain of 18.31% for QQQ.
Over three years, IAGG compounded at +3.22% per year against +25.79% for QQQ; over five years the annualized figures are -0.04% and +15.20% respectively. Across the full 11-year window we track, QQQ has the edge at +13.10% annualized vs +2.01%. 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 4.1% for IAGG. 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 -13.9% for IAGG 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IAGG charges 0.07% per year while QQQ charges 0.18%. On a $10,000 position that is $7 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, IAGG currently yields 3.63% against 0.41% for QQQ.
Holdings Overlap
IAGG and QQQ share 0 holdings out of 487 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, IAGG or QQQ?
IAGG has an expense ratio of 0.07% while QQQ charges 0.18%. IAGG is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, IAGG or QQQ?
Over the past year IAGG returned -2.31% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), IAGG annualized +2.01% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, IAGG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.1% for IAGG. Worst drawdown: IAGG -13.9% vs QQQ -83.0%.
Should I hold both IAGG and QQQ?
IAGG and QQQ have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IAGG and QQQ?
IAGG and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 487 unique securities.
Which pays a higher dividend, IAGG or QQQ?
IAGG yields 3.63% while QQQ yields 0.41%, so IAGG currently pays the higher dividend yield.
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