IBCA vs QQQ
iShares iBonds Dec 2035 Term Corporate ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IBCA has a lower expense ratio. QQQ delivered stronger 1-year returns. IBCA offers more diversification with 417 holdings.
Side-by-Side Comparison
| Metric | IBCA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.18% | |
| AUM | $373M | $455.8B | |
| Dividend Yield | 4.65% | 0.41% | |
| Holdings | 417 | 108 | |
| YTD Return | -0.54% | +19.68% | |
| 1Y Return | +2.14% | +26.75% | |
| 3Y Return (annualized) | - | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 3.7% | 30.6% | |
| Max Drawdown | -3.5% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 25, 2025 | Mar 10, 1999 |
IBCA vs QQQ Performance
iShares iBonds Dec 2035 Term Corporate ETF (IBCA) 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 IBCA returned +2.14% while QQQ returned +26.75%. Year to date, IBCA is down 0.54% versus a gain of 19.68% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.7% for IBCA. 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 -3.5% for IBCA 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBCA charges 0.10% per year while QQQ charges 0.18%. On a $10,000 position that is $10 vs $18 annually, a gap of $8 per year that compounds over a long holding period. On income, IBCA currently yields 4.65% against 0.41% for QQQ.
Holdings Overlap
IBCA and QQQ share 0 holdings out of 439 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, IBCA or QQQ?
IBCA has an expense ratio of 0.10% while QQQ charges 0.18%. IBCA is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, IBCA or QQQ?
Over the past year IBCA returned +2.14% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), IBCA annualized +4.62% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBCA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.7% for IBCA. Worst drawdown: IBCA -3.5% vs QQQ -83.0%.
Should I hold both IBCA and QQQ?
IBCA and QQQ have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBCA and QQQ?
IBCA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 439 unique securities.
Which pays a higher dividend, IBCA or QQQ?
IBCA yields 4.65% while QQQ yields 0.41%, so IBCA currently pays the higher dividend yield.
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