IBBQ vs VTI
Invesco Nasdaq Biotechnology ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. IBBQ delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | IBBQ | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.03% | |
| AUM | $80M | $666.9B | |
| Dividend Yield | 0.79% | 1.07% | |
| Holdings | 260 | 3,543 | |
| YTD Return | +28.20% | +13.14% | |
| 1Y Return | +55.59% | +22.35% | |
| 3Y Return (annualized) | +22.14% | +21.83% | |
| 5Y Return (annualized) | +7.17% | +12.01% | |
| Volatility (annualized) | 17.8% | 15.3% | |
| Max Drawdown | -37.9% | -56.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 11, 2021 | May 24, 2001 |
IBBQ vs VTI Performance
Invesco Nasdaq Biotechnology ETF (IBBQ) is a ETF from Invesco (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IBBQ returned +55.59% while VTI returned +22.35%. Year to date, IBBQ is up 28.20% versus a gain of 13.14% for VTI.
Over three years, IBBQ compounded at +22.14% per year against +21.83% for VTI; over five years the annualized figures are +7.17% and +12.01% respectively. Across the full 5-year window we track, VTI has the edge at +8.09% annualized vs +7.92%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IBBQ has been the more volatile fund, with annualized monthly volatility of 17.8% compared with 15.3% for VTI. 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 -56.6% for VTI. 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBBQ charges 0.19% per year while VTI charges 0.03%. On a $10,000 position that is $19 vs $3 annually, a gap of $16 per year that compounds over a long holding period. On income, IBBQ currently yields 0.79% against 1.07% for VTI.
Holdings Overlap
IBBQ and VTI share 171 holdings out of 2868 unique holdings combined, representing a 1.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IBBQ or VTI?
IBBQ has an expense ratio of 0.19% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, IBBQ or VTI?
Over the past year IBBQ returned +55.59% vs +22.35% for VTI, so IBBQ leads on 1-year performance. Over the longest common window we track (5 years), IBBQ annualized +7.92% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, IBBQ or VTI?
IBBQ has been the more volatile fund at 17.8% annualized versus 15.3% for VTI. Worst drawdown: IBBQ -37.9% vs VTI -56.6%.
Should I hold both IBBQ and VTI?
IBBQ and VTI have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBBQ and VTI?
IBBQ and VTI share 171 common holdings with a 1.4% weight overlap. Combined, they hold 2868 unique securities.
Which pays a higher dividend, IBBQ or VTI?
IBBQ yields 0.79% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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