IBHH vs QQQ

IBHH vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IBHH offers more diversification with 222 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: IBHH

Side-by-Side Comparison

MetricIBHHQQQWinner
Expense Ratio0.35%0.18%
AUM$463M$496.3B
Dividend Yield6.24%0.44%
Holdings222108
YTD Return-0.95%+16.64%
1Y Return+1.10%+27.27%
3Y Return (annualized)+7.10%+25.96%
5Y Return (annualized)-+14.54%
Volatility (annualized)7.6%30.6%
Max Drawdown-12.1%-83.0%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionMar 8, 2022Mar 10, 1999

IBHH vs QQQ Performance

iShares iBonds 2028 Term High Yield and Income ETF (IBHH) 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 IBHH returned +1.10% while QQQ returned +27.27%. Year to date, IBHH is down 0.95% versus a gain of 16.64% for QQQ.

Over three years, IBHH compounded at +7.10% per year against +25.96% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs +4.14%. 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 7.6% for IBHH. 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 -12.1% for IBHH 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IBHH 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, IBHH currently yields 6.24% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

IBHH and QQQ share 0 holdings out of 303 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, IBHH or QQQ?

IBHH has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.

Which performed better, IBHH or QQQ?

Over the past year IBHH returned +1.10% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), IBHH annualized +4.14% vs +13.03% for QQQ. Past performance does not guarantee future results.

Which is riskier, IBHH or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 7.6% for IBHH. Worst drawdown: IBHH -12.1% vs QQQ -83.0%.

Should I hold both IBHH and QQQ?

IBHH and QQQ have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBHH and QQQ?

IBHH and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 303 unique securities.

Which pays a higher dividend, IBHH or QQQ?

IBHH yields 6.24% while QQQ yields 0.44%, so IBHH currently pays the higher dividend yield.

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