IBB vs QQQ
iShares Biotechnology ETF vs Invesco QQQ Trust, Series 1
Which is better, IBB or QQQ?
Mid Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. IBB led over 1Y, QQQ over 3Y, 5Y and the full window. IBB is less concentrated, with 44.9% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IBB | QQQ |
|---|---|---|
| Expense Ratio | 0.44% | 0.18%Best |
| AUM | $10.5B | $486.1B |
| Dividend Yield | 0.22% | 0.44% |
| Holdings | 253 | 107 |
| YTD Return | +26.62%Best | +17.33% |
| 1Y Return | +52.63%Best | +26.50% |
| 3Y Return (annualized) | +18.95% | +24.58%Best |
| 5Y Return (annualized) | +4.26% | +14.15%Best |
| Volatility (annualized) | 22.0% | 20.9%Best |
| Max Drawdown | -62.9%Best | -65.7% |
| $10,000 over 5 years | $12,319 | $19,381Best |
| Top 10 Weight | 44.9%Best | 46.5% |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Growth |
| Inception | Feb 5, 2001 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Feb 9, 2001 to Sep 3, 2026 (25.6 years).
IBB vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 25.6 years both funds cover.
IBB vs QQQ Performance
iShares Biotechnology ETF (IBB) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year IBB returned +52.63% while QQQ returned +26.50%. Year to date, IBB is up 26.62% versus a gain of 17.33% for QQQ.
Over three years, IBB compounded at +18.95% per year against +24.58% for QQQ; over five years the annualized figures are +4.26% and +14.15% respectively. Across the full 26-year window we track, QQQ has the edge at +10.60% annualized vs +7.55%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IBB has been the more volatile fund, with annualized monthly volatility of 22.0% compared with 20.9% for QQQ. 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 -62.9% for IBB and -65.7% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.68. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IBB charges 0.44% per year while QQQ charges 0.18%. On a $10,000 position that is $44 vs $18 annually, a gap of $26 per year that compounds over a long holding period. On income, IBB currently yields 0.22% against 0.44% for QQQ.
Holdings Overlap
31.0% of IBB's money is in holdings QQQ also owns. 2.7% of QQQ's money is in holdings IBB also owns.
The two portfolios partly overlap.
5 positions in common, counted across the 242 positions we hold weights for in IBB and 102 in QQQ, against full books of 253 and 107.
What only one of them owns
Our book lists 91 positions for QQQ that do not appear in our book for IBB (94.8% of the fund), and 206 for IBB that do not appear in QQQ (56.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
31.0% of IBB is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IBB or QQQ?
IBB has an expense ratio of 0.44% while QQQ charges 0.18%. QQQ is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, IBB or QQQ?
Over the past year IBB returned +52.63% vs +26.50% for QQQ, so IBB leads on 1-year performance. Over the longest common window we track (26 years), IBB annualized +7.55% vs +10.60% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBB or QQQ?
IBB has been the more volatile fund at 22.0% annualized versus 20.9% for QQQ. Worst drawdown: IBB -62.9% vs QQQ -65.7%.
Should I hold both IBB and QQQ?
IBB and QQQ have a monthly-return correlation of 0.68, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IBB and QQQ?
31.0% of IBB's money is in holdings QQQ also owns. 2.7% of QQQ's is in holdings IBB also owns. They hold 5 positions in common, counted across the 242 positions we hold weights for in IBB and 102 in QQQ.
Which pays a higher dividend, IBB or QQQ?
IBB yields 0.22% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
Is QQQ better than IBB?
QQQ has a lower expense ratio. IBB led over 1Y, QQQ over 3Y, 5Y and the full window. IBB is less concentrated, with 44.9% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.