IBDU vs QQQ
iShares iBonds Dec 2029 Term Corporate ETF vs Invesco QQQ Trust, Series 1
Which is better, IBDU or QQQ?
Short Term High Quality against Large Cap Growth.
IBDU has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
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 | IBDU | QQQ |
|---|---|---|
| Expense Ratio | 0.10%Best | 0.18% |
| AUM | $3.9B | $483.5B |
| Dividend Yield | 4.64% | 0.44% |
| Holdings | 675 | 107 |
| YTD Return | +0.32% | +17.95%Best |
| 1Y Return | +1.49% | +21.77%Best |
| 3Y Return (annualized) | +5.94% | +25.63%Best |
| 5Y Return (annualized) | +0.79% | +15.24%Best |
| Volatility (annualized) | 7.3%Best | 20.6% |
| Max Drawdown | -19.5%Best | -35.1% |
| $10,000 over 5 years | $10,401 | $20,324Best |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | Short Term High Quality | Large Cap Growth |
| Inception | Sep 17, 2019 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 19, 2019 to Sep 18, 2026 (7 years).
IBDU 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.
IBDU vs QQQ Performance
iShares iBonds Dec 2029 Term Corporate ETF (IBDU) 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 IBDU returned +1.49% while QQQ returned +21.77%. Year to date, IBDU is up 0.32% versus a gain of 17.95% for QQQ.
Over three years, IBDU compounded at +5.94% per year against +25.63% for QQQ; over five years the annualized figures are +0.79% and +15.24% respectively. Across the full 7-year window we track, QQQ has the edge at +21.31% annualized vs +1.79%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.6% compared with 7.3% for IBDU. 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 -19.5% for IBDU 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 0.63. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IBDU 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, IBDU currently yields 4.64% against 0.44% for QQQ.
Holdings Overlap
At least 0.2% of QQQ's money is in holdings IBDU also owns.
Stated as a floor: for IBDU, our book for it covers 80.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 543 positions we hold weights for in IBDU and 102 in QQQ, against full books of 675 and 107.
Top Shared Holdings
| Stock | Weight in IBDU | Weight in QQQ | Difference |
|---|---|---|---|
| KDPKeurig Dr Pepper Inc (kdp Us) | 0.19% | 0.18% | 0.01% |
You are not choosing between two funds in isolation.
Whichever of IBDU 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, IBDU or QQQ?
IBDU has an expense ratio of 0.10% while QQQ charges 0.18%. IBDU is the cheaper option, by $8 a year on a $10,000 investment.
Which performed better, IBDU or QQQ?
Over the past year IBDU returned +1.49% vs +21.77% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), IBDU annualized +1.79% vs +21.31% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBDU or QQQ?
QQQ has been the more volatile fund at 20.6% annualized versus 7.3% for IBDU. Worst drawdown: IBDU -19.5% vs QQQ -35.1%.
Should I hold both IBDU and QQQ?
IBDU and QQQ have a monthly-return correlation of 0.63, 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, IBDU or QQQ?
IBDU yields 4.64% while QQQ yields 0.44%, so IBDU currently pays the higher dividend yield.
Is QQQ better than IBDU?
IBDU has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.