IAT vs QQQ
iShares US Regional Banks 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 108 holdings.
Side-by-Side Comparison
| Metric | IAT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.18% | |
| AUM | $686M | $496.3B | |
| Dividend Yield | 2.55% | 0.44% | |
| Holdings | 35 | 108 | |
| YTD Return | +13.05% | +16.64% | |
| 1Y Return | +24.83% | +27.27% | |
| 3Y Return (annualized) | +25.83% | +25.96% | |
| 5Y Return (annualized) | +4.75% | +14.54% | |
| Volatility (annualized) | 25.5% | 30.6% | |
| Max Drawdown | -78.8% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Mar 10, 1999 |
IAT vs QQQ Performance
iShares US Regional Banks ETF (IAT) 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 IAT returned +24.83% while QQQ returned +27.27%. Year to date, IAT is up 13.05% versus a gain of 16.64% for QQQ.
Over three years, IAT compounded at +25.83% per year against +25.96% for QQQ; over five years the annualized figures are +4.75% and +14.54% respectively. Across the full 20-year window we track, QQQ has the edge at +13.03% annualized vs +1.87%. 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 25.5% for IAT. 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 -78.8% for IAT 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IAT charges 0.37% per year while QQQ charges 0.18%. On a $10,000 position that is $37 vs $18 annually, a gap of $19 per year that compounds over a long holding period. On income, IAT currently yields 2.55% against 0.44% for QQQ.
Holdings Overlap
IAT and QQQ share 0 holdings out of 134 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, IAT or QQQ?
IAT has an expense ratio of 0.37% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, IAT or QQQ?
Over the past year IAT returned +24.83% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), IAT annualized +1.87% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IAT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 25.5% for IAT. Worst drawdown: IAT -78.8% vs QQQ -83.0%.
Should I hold both IAT and QQQ?
IAT and QQQ have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IAT and QQQ?
IAT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 134 unique securities.
Which pays a higher dividend, IAT or QQQ?
IAT yields 2.55% while QQQ yields 0.44%, so IAT 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.