IBDY vs QQQ
iShares iBonds Dec 2033 Term Corporate ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IBDY has a lower expense ratio. QQQ delivered stronger 1-year returns. IBDY offers more diversification with 398 holdings.
Side-by-Side Comparison
| Metric | IBDY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.18% | |
| AUM | $1.1B | $496.3B | |
| Dividend Yield | 4.95% | 0.44% | |
| Holdings | 398 | 108 | |
| YTD Return | -0.18% | +19.52% | |
| 1Y Return | +2.51% | +26.68% | |
| 3Y Return (annualized) | +6.18% | +26.64% | |
| 5Y Return (annualized) | - | +15.36% | |
| Volatility (annualized) | 6.7% | 30.6% | |
| Max Drawdown | -7.5% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 21, 2023 | Mar 10, 1999 |
IBDY vs QQQ Performance
iShares iBonds Dec 2033 Term Corporate ETF (IBDY) 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 IBDY returned +2.51% while QQQ returned +26.68%. Year to date, IBDY is down 0.18% versus a gain of 19.52% for QQQ.
Over three years, IBDY compounded at +6.18% per year against +26.64% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.14% annualized vs +5.33%. 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 6.7% for IBDY. 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 -7.5% for IBDY 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDY 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, IBDY currently yields 4.95% against 0.44% for QQQ.
Holdings Overlap
IBDY and QQQ share 0 holdings out of 419 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, IBDY or QQQ?
IBDY has an expense ratio of 0.10% while QQQ charges 0.18%. IBDY is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, IBDY or QQQ?
Over the past year IBDY returned +2.51% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), IBDY annualized +5.33% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBDY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.7% for IBDY. Worst drawdown: IBDY -7.5% vs QQQ -83.0%.
Should I hold both IBDY and QQQ?
IBDY and QQQ have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDY and QQQ?
IBDY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 419 unique securities.
Which pays a higher dividend, IBDY or QQQ?
IBDY yields 4.95% while QQQ yields 0.44%, so IBDY currently pays the higher dividend yield.
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