IAUM vs QQQ

IAUM vs QQQ
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Quick Verdict

IAUM has a lower expense ratio. IAUM delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: IAUMHigher Returns: IAUMMore Diversified: QQQ

Side-by-Side Comparison

MetricIAUMQQQWinner
Expense Ratio0.09%0.18%
AUM$7.4B$496.3B
Dividend Yield0.00%0.44%
Holdings2108
YTD Return+6.51%+16.64%
1Y Return+38.23%+27.27%
3Y Return (annualized)+34.41%+25.96%
5Y Return (annualized)+20.62%+14.54%
Volatility (annualized)17.1%30.6%
Max Drawdown-26.3%-83.0%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryCommodityEquity
InceptionJun 15, 2021Mar 10, 1999

IAUM vs QQQ Performance

iShares Gold Trust Micro (IAUM) 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 IAUM returned +38.23% while QQQ returned +27.27%. Year to date, IAUM is up 6.51% versus a gain of 16.64% for QQQ.

Over three years, IAUM compounded at +34.41% per year against +25.96% for QQQ; over five years the annualized figures are +20.62% and +14.54% respectively. Across the full 5-year window we track, IAUM has the edge at +20.50% annualized vs +13.03%. 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 17.1% for IAUM. 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 -26.3% for IAUM 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 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IAUM charges 0.09% per year while QQQ charges 0.18%. On a $10,000 position that is $9 vs $18 annually, a gap of $9 per year that compounds over a long holding period. On income, IAUM currently yields 0.00% against 0.44% for QQQ.

Frequently Asked Questions

Which is cheaper, IAUM or QQQ?

IAUM has an expense ratio of 0.09% while QQQ charges 0.18%. IAUM is the cheaper option. On a $10,000 investment, that is $9 per year of difference.

Which performed better, IAUM or QQQ?

Over the past year IAUM returned +38.23% vs +27.27% for QQQ, so IAUM leads on 1-year performance. Over the longest common window we track (5 years), IAUM annualized +20.50% vs +13.03% for QQQ. Past performance does not guarantee future results.

Which is riskier, IAUM or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 17.1% for IAUM. Worst drawdown: IAUM -26.3% vs QQQ -83.0%.

Should I hold both IAUM and QQQ?

IAUM and QQQ have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, IAUM or QQQ?

IAUM yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.

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