IBDV vs QQQ

Quick Verdict

IBDV has a lower expense ratio. QQQ delivered stronger 1-year returns. IBDV offers more diversification with 660 holdings.

Lower Fees: IBDVHigher Returns: QQQMore Diversified: IBDV

Side-by-Side Comparison

MetricIBDVQQQWinner
Expense Ratio0.10%0.18%
AUM$3.3B$455.8B
Dividend Yield4.59%0.41%
Holdings731108
YTD Return+0.16%+18.31%
1Y Return+2.42%+25.37%
3Y Return (annualized)+5.81%+25.79%
5Y Return (annualized)+0.49%+15.20%
Volatility (annualized)7.1%30.6%
Max Drawdown-22.0%-83.0%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionJun 23, 2020Mar 10, 1999

IBDV vs QQQ Performance

iShares iBonds Dec 2030 Term Corporate ETF (IBDV) 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 IBDV returned +2.42% while QQQ returned +25.37%. Year to date, IBDV is up 0.16% versus a gain of 18.31% for QQQ.

Over three years, IBDV compounded at +5.81% per year against +25.79% for QQQ; over five years the annualized figures are +0.49% and +15.20% respectively. Across the full 6-year window we track, QQQ has the edge at +13.10% annualized vs +0.79%. 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 7.1% for IBDV. 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 -22.0% for IBDV 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IBDV 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, IBDV currently yields 4.59% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

IBDV and QQQ share 0 holdings out of 763 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, IBDV or QQQ?

IBDV has an expense ratio of 0.10% while QQQ charges 0.18%. IBDV is the cheaper option. On a $10,000 investment, that is $8 per year of difference.

Which performed better, IBDV or QQQ?

Over the past year IBDV returned +2.42% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), IBDV annualized +0.79% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, IBDV or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 7.1% for IBDV. Worst drawdown: IBDV -22.0% vs QQQ -83.0%.

Should I hold both IBDV and QQQ?

IBDV and QQQ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBDV and QQQ?

IBDV and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 763 unique securities.

Which pays a higher dividend, IBDV or QQQ?

IBDV yields 4.59% while QQQ yields 0.41%, so IBDV currently pays the higher dividend yield.

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