IBBQ vs QQQ
Invesco Nasdaq Biotechnology ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. IBBQ delivered stronger 1-year returns. IBBQ offers more diversification with 260 holdings.
Side-by-Side Comparison
| Metric | IBBQ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.18% | |
| AUM | $80M | $496.3B | |
| Dividend Yield | 0.79% | 0.44% | |
| Holdings | 260 | 108 | |
| YTD Return | +28.20% | +16.64% | |
| 1Y Return | +55.59% | +27.27% | |
| 3Y Return (annualized) | +22.14% | +25.96% | |
| 5Y Return (annualized) | +7.17% | +14.54% | |
| Volatility (annualized) | 17.8% | 30.6% | |
| Max Drawdown | -37.9% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 11, 2021 | Mar 10, 1999 |
IBBQ vs QQQ Performance
Invesco Nasdaq Biotechnology ETF (IBBQ) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IBBQ returned +55.59% while QQQ returned +27.27%. Year to date, IBBQ is up 28.20% versus a gain of 16.64% for QQQ.
Over three years, IBBQ compounded at +22.14% per year against +25.96% for QQQ; over five years the annualized figures are +7.17% and +14.54% respectively. Across the full 5-year window we track, QQQ has the edge at +13.03% annualized vs +7.92%. 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 17.8% for IBBQ. 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 -37.9% for IBBQ 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBBQ charges 0.19% per year while QQQ charges 0.18%. On a $10,000 position that is $19 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, IBBQ currently yields 0.79% against 0.44% for QQQ.
Holdings Overlap
IBBQ and QQQ share 5 holdings out of 349 unique holdings combined, representing a 2.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IBBQ or QQQ?
IBBQ has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, IBBQ or QQQ?
Over the past year IBBQ returned +55.59% vs +27.27% for QQQ, so IBBQ leads on 1-year performance. Over the longest common window we track (5 years), IBBQ annualized +7.92% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBBQ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.8% for IBBQ. Worst drawdown: IBBQ -37.9% vs QQQ -83.0%.
Should I hold both IBBQ and QQQ?
IBBQ and QQQ have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBBQ and QQQ?
IBBQ and QQQ share 5 common holdings with a 2.7% weight overlap. Combined, they hold 349 unique securities.
Which pays a higher dividend, IBBQ or QQQ?
IBBQ yields 0.79% while QQQ yields 0.44%, so IBBQ currently pays the higher dividend yield.
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