IAK vs QQQ
iShares US Insurance ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | IAK | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $514M | $455.8B | |
| Dividend Yield | 2.54% | 0.41% | |
| Holdings | 61 | 108 | |
| YTD Return | +9.97% | +17.46% | |
| 1Y Return | +15.42% | +26.02% | |
| 3Y Return (annualized) | +19.24% | +25.51% | |
| 5Y Return (annualized) | +14.45% | +15.12% | |
| Volatility (annualized) | 20.3% | 30.6% | |
| Max Drawdown | -78.0% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Mar 10, 1999 |
IAK vs QQQ Performance
iShares US Insurance ETF (IAK) 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 IAK returned +15.42% while QQQ returned +26.02%. Year to date, IAK is up 9.97% versus a gain of 17.46% for QQQ.
Over three years, IAK compounded at +19.24% per year against +25.51% for QQQ; over five years the annualized figures are +14.45% and +15.12% respectively. Across the full 20-year window we track, QQQ has the edge at +13.08% annualized vs +5.94%. 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 20.3% for IAK. 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 -78.0% for IAK 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IAK charges 0.38% per year while QQQ charges 0.18%. On a $10,000 position that is $38 vs $18 annually, a gap of $20 per year that compounds over a long holding period. On income, IAK currently yields 2.54% against 0.41% for QQQ.
Holdings Overlap
IAK and QQQ share 0 holdings out of 108 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, IAK or QQQ?
IAK has an expense ratio of 0.38% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, IAK or QQQ?
Over the past year IAK returned +15.42% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), IAK annualized +5.94% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, IAK or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.3% for IAK. Worst drawdown: IAK -78.0% vs QQQ -83.0%.
Should I hold both IAK and QQQ?
IAK and QQQ have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IAK and QQQ?
IAK and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 108 unique securities.
Which pays a higher dividend, IAK or QQQ?
IAK yields 2.54% while QQQ yields 0.41%, so IAK currently pays the higher dividend yield.
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