IBDS vs QQQ
iShares iBonds Dec 2027 Term Corporate ETF vs Invesco QQQ Trust, Series 1
Which is better, IBDS or QQQ?
QQQ has been ahead.
IBDS has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. IBDS is less concentrated, with 7.9% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IBDS | QQQ |
|---|---|---|
| Expense Ratio | 0.10%Best | 0.18% |
| AUM | $3.9B | $483.5B |
| Dividend Yield | 4.29% | 0.44% |
| Holdings | 663 | 107 |
| YTD Return | +2.18% | +17.95%Best |
| 1Y Return | +3.50% | +21.77%Best |
| 3Y Return (annualized) | +5.63% | +25.63%Best |
| 5Y Return (annualized) | +1.38% | +15.24%Best |
| Volatility (annualized) | 5.5%Best | 19.9% |
| Max Drawdown | -16.8%Best | -35.1% |
| $10,000 over 5 years | $10,709 | $20,324Best |
| Top 10 Weight | 7.9%Best | 46.5% |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Growth |
| Inception | Sep 12, 2017 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Sep 14, 2017 to Sep 18, 2026 (9 years).
IBDS vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
IBDS vs QQQ Performance
iShares iBonds Dec 2027 Term Corporate ETF (IBDS) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year IBDS returned +3.50% while QQQ returned +21.77%. Year to date, IBDS is up 2.18% versus a gain of 17.95% for QQQ.
Over three years, IBDS compounded at +5.63% per year against +25.63% for QQQ; over five years the annualized figures are +1.38% and +15.24% respectively. Across the full 9-year window we track, QQQ has the edge at +19.87% annualized vs +1.89%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.9% compared with 5.5% for IBDS. 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 -16.8% for IBDS and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.52. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IBDS 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, IBDS currently yields 4.29% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 604 holdings in IBDS and 102 in QQQ, totalling 95.8% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 604 positions we hold weights for in IBDS and 102 in QQQ, against full books of 663 and 107.
What only one of them owns
Measured across the 604 and 102 positions we hold weights for.
QQQ holds 93 positions IBDS does not, 91.8% of the fund.
Largest: NVDA 8.44%, AAPL 7.27%, AMZN 4.67%, MU 4.43%, AMD 3.45%
You are not choosing between two funds in isolation.
Whichever of IBDS and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IBDS or QQQ?
IBDS has an expense ratio of 0.10% while QQQ charges 0.18%. IBDS is the cheaper option, by $8 a year on a $10,000 investment.
Which performed better, IBDS or QQQ?
Over the past year IBDS returned +3.50% vs +21.77% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), IBDS annualized +1.89% vs +19.87% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBDS or QQQ?
QQQ has been the more volatile fund at 19.9% annualized versus 5.5% for IBDS. Worst drawdown: IBDS -16.8% vs QQQ -35.1%.
Should I hold both IBDS and QQQ?
IBDS and QQQ have a monthly-return correlation of 0.52, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IBDS or QQQ?
IBDS yields 4.29% while QQQ yields 0.44%, so IBDS currently pays the higher dividend yield.
Is QQQ better than IBDS?
IBDS has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. IBDS is less concentrated, with 7.9% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.