IBDZ vs QQQ
iShares iBonds Dec 2034 Term Corporate ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IBDZ has a lower expense ratio. QQQ delivered stronger 1-year returns. IBDZ offers more diversification with 374 holdings.
Side-by-Side Comparison
| Metric | IBDZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.18% | |
| AUM | $875M | $496.3B | |
| Dividend Yield | 4.92% | 0.44% | |
| Holdings | 374 | 108 | |
| YTD Return | -0.23% | +19.52% | |
| 1Y Return | +2.72% | +26.68% | |
| 3Y Return (annualized) | - | +26.64% | |
| 5Y Return (annualized) | - | +15.36% | |
| Volatility (annualized) | 4.5% | 30.6% | |
| Max Drawdown | -5.6% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 22, 2024 | Mar 10, 1999 |
IBDZ vs QQQ Performance
iShares iBonds Dec 2034 Term Corporate ETF (IBDZ) 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 IBDZ returned +2.72% while QQQ returned +26.68%. Year to date, IBDZ is down 0.23% versus a gain of 19.52% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 4.5% for IBDZ. 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 -5.6% for IBDZ 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDZ 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, IBDZ currently yields 4.92% against 0.44% for QQQ.
Holdings Overlap
IBDZ and QQQ share 0 holdings out of 459 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, IBDZ or QQQ?
IBDZ has an expense ratio of 0.10% while QQQ charges 0.18%. IBDZ is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, IBDZ or QQQ?
Over the past year IBDZ returned +2.72% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), IBDZ annualized +5.70% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBDZ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.5% for IBDZ. Worst drawdown: IBDZ -5.6% vs QQQ -83.0%.
Should I hold both IBDZ and QQQ?
IBDZ and QQQ have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDZ and QQQ?
IBDZ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 459 unique securities.
Which pays a higher dividend, IBDZ or QQQ?
IBDZ yields 4.92% while QQQ yields 0.44%, so IBDZ currently pays the higher dividend yield.
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