IBHG vs QQQ
iShares iBonds 2027 Term High Yield and Income ETF vs Invesco QQQ Trust, Series 1
Which is better, IBHG or QQQ?
High Yield Bond against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. IBHG is less concentrated, with 23.4% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IBHG | QQQ |
|---|---|---|
| Expense Ratio | 0.35% | 0.18%Best |
| AUM | $525M | $483.5B |
| Dividend Yield | 6.00% | 0.44% |
| Holdings | 91 | 107 |
| YTD Return | -2.02% | +15.94%Best |
| 1Y Return | -1.33% | +20.44%Best |
| 3Y Return (annualized) | +5.49% | +24.86%Best |
| 5Y Return (annualized) | +2.63% | +14.26%Best |
| Volatility (annualized) | 6.7%Best | 20.8% |
| Max Drawdown | -13.8%Best | -35.1% |
| $10,000 over 5 years | $11,386 | $19,475Best |
| Top 10 Weight | 23.4%Best | 46.5% |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Growth |
| Inception | Jul 7, 2021 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Jul 9, 2021 to Sep 14, 2026 (5.2 years).
IBHG vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.2 years both funds cover.
IBHG vs QQQ Performance
iShares iBonds 2027 Term High Yield and Income ETF (IBHG) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year IBHG returned -1.33% while QQQ returned +20.44%. Year to date, IBHG is down 2.02% versus a gain of 15.94% for QQQ.
Over three years, IBHG compounded at +5.49% per year against +24.86% for QQQ; over five years the annualized figures are +2.63% and +14.26% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.8% compared with 6.7% for IBHG. 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 -13.8% for IBHG and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.68. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IBHG charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, IBHG currently yields 6.00% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 348 holdings in IBHG and 102 in QQQ, totalling 95.3% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 348 positions we hold weights for in IBHG and 102 in QQQ, against full books of 91 and 107.
What only one of them owns
Measured across the 348 and 102 positions we hold weights for.
QQQ holds 95 positions IBHG does not, 97.5% of the fund.
Largest: NVDA 8.44%, AAPL 7.27%, MSFT 5.76%, AMZN 4.67%, MU 4.43%
You are not choosing between two funds in isolation.
Whichever of IBHG and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IBHG or QQQ?
IBHG has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, IBHG or QQQ?
Over the past year IBHG returned -1.33% vs +20.44% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBHG or QQQ?
QQQ has been the more volatile fund at 20.8% annualized versus 6.7% for IBHG. Worst drawdown: IBHG -13.8% vs QQQ -35.1%.
Should I hold both IBHG and QQQ?
IBHG and QQQ have a monthly-return correlation of 0.68, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IBHG or QQQ?
IBHG yields 6.00% while QQQ yields 0.44%, so IBHG currently pays the higher dividend yield.
Is QQQ better than IBHG?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. IBHG is less concentrated, with 23.4% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.