IBDQ vs QQQ
iShares iBonds Dec 2025 Term Corporate ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IBDQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IBDQ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.18% | |
| AUM | $2.3B | $496.3B | |
| Dividend Yield | 3.75% | 0.44% | |
| Holdings | 21 | 108 | |
| YTD Return | +3.79% | +16.64% | |
| 1Y Return | +4.01% | +27.27% | |
| 3Y Return (annualized) | +4.57% | +25.96% | |
| 5Y Return (annualized) | +1.36% | +14.54% | |
| Volatility (annualized) | 4.1% | 30.6% | |
| Max Drawdown | -15.2% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 11, 2015 | Mar 10, 1999 |
IBDQ vs QQQ Performance
iShares iBonds Dec 2025 Term Corporate ETF (IBDQ) 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 IBDQ returned +4.01% while QQQ returned +27.27%. Year to date, IBDQ is up 3.79% versus a gain of 16.64% for QQQ.
Over three years, IBDQ compounded at +4.57% per year against +25.96% for QQQ; over five years the annualized figures are +1.36% and +14.54% respectively. Across the full 11-year window we track, QQQ has the edge at +13.03% annualized vs +3.29%. 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 4.1% for IBDQ. 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 -15.2% for IBDQ 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDQ 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, IBDQ currently yields 3.75% against 0.44% for QQQ.
Holdings Overlap
IBDQ and QQQ share 0 holdings out of 122 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, IBDQ or QQQ?
IBDQ has an expense ratio of 0.10% while QQQ charges 0.18%. IBDQ is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, IBDQ or QQQ?
Over the past year IBDQ returned +4.01% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), IBDQ annualized +3.29% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBDQ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.1% for IBDQ. Worst drawdown: IBDQ -15.2% vs QQQ -83.0%.
Should I hold both IBDQ and QQQ?
IBDQ and QQQ have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDQ and QQQ?
IBDQ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 122 unique securities.
Which pays a higher dividend, IBDQ or QQQ?
IBDQ yields 3.75% while QQQ yields 0.44%, so IBDQ currently pays the higher dividend yield.
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