IBDR vs QQQ
iShares iBonds Dec 2026 Term Corporate ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IBDR has a lower expense ratio. QQQ delivered stronger 1-year returns. IBDR offers more diversification with 223 holdings.
Side-by-Side Comparison
| Metric | IBDR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.18% | |
| AUM | $3.4B | $455.8B | |
| Dividend Yield | 4.12% | 0.41% | |
| Holdings | 264 | 108 | |
| YTD Return | +1.86% | +19.68% | |
| 1Y Return | +3.69% | +26.75% | |
| 3Y Return (annualized) | +5.19% | +26.25% | |
| 5Y Return (annualized) | +1.51% | +15.39% | |
| Volatility (annualized) | 4.6% | 30.6% | |
| Max Drawdown | -16.1% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 13, 2016 | Mar 10, 1999 |
IBDR vs QQQ Performance
iShares iBonds Dec 2026 Term Corporate ETF (IBDR) 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 IBDR returned +3.69% while QQQ returned +26.75%. Year to date, IBDR is up 1.86% versus a gain of 19.68% for QQQ.
Over three years, IBDR compounded at +5.19% per year against +26.25% for QQQ; over five years the annualized figures are +1.51% and +15.39% respectively. Across the full 10-year window we track, QQQ has the edge at +13.15% annualized vs +1.54%. 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 4.6% for IBDR. 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 -16.1% for IBDR 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDR 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, IBDR currently yields 4.12% against 0.41% for QQQ.
Holdings Overlap
IBDR and QQQ share 0 holdings out of 326 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, IBDR or QQQ?
IBDR has an expense ratio of 0.10% while QQQ charges 0.18%. IBDR is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, IBDR or QQQ?
Over the past year IBDR returned +3.69% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), IBDR annualized +1.54% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBDR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.6% for IBDR. Worst drawdown: IBDR -16.1% vs QQQ -83.0%.
Should I hold both IBDR and QQQ?
IBDR and QQQ have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDR and QQQ?
IBDR and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 326 unique securities.
Which pays a higher dividend, IBDR or QQQ?
IBDR yields 4.12% while QQQ yields 0.41%, so IBDR currently pays the higher dividend yield.
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