IBDT vs QQQ
iShares iBonds Dec 2028 Term Corporate ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IBDT has a lower expense ratio. QQQ delivered stronger 1-year returns. IBDT offers more diversification with 730 holdings.
Side-by-Side Comparison
| Metric | IBDT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.18% | |
| AUM | $4.1B | $496.3B | |
| Dividend Yield | 4.52% | 0.44% | |
| Holdings | 730 | 108 | |
| YTD Return | +1.50% | +16.64% | |
| 1Y Return | +3.71% | +27.27% | |
| 3Y Return (annualized) | +5.95% | +25.96% | |
| 5Y Return (annualized) | +1.12% | +14.54% | |
| Volatility (annualized) | 6.4% | 30.6% | |
| Max Drawdown | -17.8% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 18, 2018 | Mar 10, 1999 |
IBDT vs QQQ Performance
iShares iBonds Dec 2028 Term Corporate ETF (IBDT) 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 IBDT returned +3.71% while QQQ returned +27.27%. Year to date, IBDT is up 1.50% versus a gain of 16.64% for QQQ.
Over three years, IBDT compounded at +5.95% per year against +25.96% for QQQ; over five years the annualized figures are +1.12% and +14.54% respectively. Across the full 8-year window we track, QQQ has the edge at +13.03% annualized vs +2.80%. 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 6.4% for IBDT. 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 -17.8% for IBDT 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDT 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, IBDT currently yields 4.52% against 0.44% for QQQ.
Holdings Overlap
IBDT and QQQ share 0 holdings out of 755 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, IBDT or QQQ?
IBDT has an expense ratio of 0.10% while QQQ charges 0.18%. IBDT is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, IBDT or QQQ?
Over the past year IBDT returned +3.71% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), IBDT annualized +2.80% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBDT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.4% for IBDT. Worst drawdown: IBDT -17.8% vs QQQ -83.0%.
Should I hold both IBDT and QQQ?
IBDT and QQQ have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDT and QQQ?
IBDT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 755 unique securities.
Which pays a higher dividend, IBDT or QQQ?
IBDT yields 4.52% while QQQ yields 0.44%, so IBDT currently pays the higher dividend yield.
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