IBDX vs QQQ
iShares iBonds Dec 2032 Term Corporate ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IBDX has a lower expense ratio. QQQ delivered stronger 1-year returns. IBDX offers more diversification with 424 holdings.
Side-by-Side Comparison
| Metric | IBDX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.18% | |
| AUM | $1.7B | $496.3B | |
| Dividend Yield | 4.85% | 0.44% | |
| Holdings | 424 | 108 | |
| YTD Return | +0.04% | +16.64% | |
| 1Y Return | +2.95% | +27.27% | |
| 3Y Return (annualized) | +6.47% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 8.5% | 30.6% | |
| Max Drawdown | -12.5% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 28, 2022 | Mar 10, 1999 |
IBDX vs QQQ Performance
iShares iBonds Dec 2032 Term Corporate ETF (IBDX) 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 IBDX returned +2.95% while QQQ returned +27.27%. Year to date, IBDX is up 0.04% versus a gain of 16.64% for QQQ.
Over three years, IBDX compounded at +6.47% per year against +25.96% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs +4.49%. 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 8.5% for IBDX. 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 -12.5% for IBDX 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDX 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, IBDX currently yields 4.85% against 0.44% for QQQ.
Holdings Overlap
IBDX and QQQ share 0 holdings out of 486 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, IBDX or QQQ?
IBDX has an expense ratio of 0.10% while QQQ charges 0.18%. IBDX is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, IBDX or QQQ?
Over the past year IBDX returned +2.95% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), IBDX annualized +4.49% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBDX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.5% for IBDX. Worst drawdown: IBDX -12.5% vs QQQ -83.0%.
Should I hold both IBDX and QQQ?
IBDX and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDX and QQQ?
IBDX and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 486 unique securities.
Which pays a higher dividend, IBDX or QQQ?
IBDX yields 4.85% while QQQ yields 0.44%, so IBDX currently pays the higher dividend yield.
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