IBDU vs QQQ
iShares iBonds Dec 2029 Term Corporate ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IBDU has a lower expense ratio. QQQ delivered stronger 1-year returns. IBDU offers more diversification with 675 holdings.
Side-by-Side Comparison
| Metric | IBDU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.18% | |
| AUM | $4.1B | $496.3B | |
| Dividend Yield | 4.65% | 0.44% | |
| Holdings | 675 | 108 | |
| YTD Return | +1.10% | +16.64% | |
| 1Y Return | +3.39% | +27.27% | |
| 3Y Return (annualized) | +6.37% | +25.96% | |
| 5Y Return (annualized) | +0.96% | +14.54% | |
| Volatility (annualized) | 7.3% | 30.6% | |
| Max Drawdown | -19.5% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 17, 2019 | Mar 10, 1999 |
IBDU vs QQQ Performance
iShares iBonds Dec 2029 Term Corporate ETF (IBDU) 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 IBDU returned +3.39% while QQQ returned +27.27%. Year to date, IBDU is up 1.10% versus a gain of 16.64% for QQQ.
Over three years, IBDU compounded at +6.37% per year against +25.96% for QQQ; over five years the annualized figures are +0.96% and +14.54% respectively. Across the full 7-year window we track, QQQ has the edge at +13.03% annualized vs +1.92%. 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 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 -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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
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 4.65% against 0.44% for QQQ.
Holdings Overlap
IBDU and QQQ share 1 holdings out of 666 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IBDU | Weight in QQQ | Difference |
|---|---|---|---|
| KDP | 0.18% | 0.18% | 0.00% |
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. On a $10,000 investment, that is $8 per year of difference.
Which performed better, IBDU or QQQ?
Over the past year IBDU returned +3.39% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), IBDU annualized +1.92% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBDU or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 7.3% for IBDU. Worst drawdown: IBDU -19.5% vs QQQ -83.0%.
Should I hold both IBDU and QQQ?
IBDU and QQQ have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDU and QQQ?
IBDU and QQQ share 1 common holdings with a 0.2% weight overlap. Combined, they hold 666 unique securities.
Which pays a higher dividend, IBDU or QQQ?
IBDU yields 4.65% while QQQ yields 0.44%, so IBDU currently pays the higher dividend yield.
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