IBHJ vs QQQ
iShares iBonds 2030 Term High Yield and Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IBHJ offers more diversification with 299 holdings.
Side-by-Side Comparison
| Metric | IBHJ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $176M | $496.3B | |
| Dividend Yield | 6.69% | 0.44% | |
| Holdings | 299 | 108 | |
| YTD Return | -0.96% | +16.64% | |
| 1Y Return | +2.07% | +27.27% | |
| 3Y Return (annualized) | +7.63% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 5.0% | 30.6% | |
| Max Drawdown | -4.9% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 21, 2023 | Mar 10, 1999 |
IBHJ vs QQQ Performance
iShares iBonds 2030 Term High Yield and Income ETF (IBHJ) 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 IBHJ returned +2.07% while QQQ returned +27.27%. Year to date, IBHJ is down 0.96% versus a gain of 16.64% for QQQ.
Over three years, IBHJ compounded at +7.63% per year against +25.96% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.03% annualized vs +7.42%. 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 5.0% for IBHJ. 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 -4.9% for IBHJ 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBHJ 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, IBHJ currently yields 6.69% against 0.44% for QQQ.
Holdings Overlap
IBHJ and QQQ share 0 holdings out of 358 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, IBHJ or QQQ?
IBHJ 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, IBHJ or QQQ?
Over the past year IBHJ returned +2.07% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), IBHJ annualized +7.42% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBHJ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.0% for IBHJ. Worst drawdown: IBHJ -4.9% vs QQQ -83.0%.
Should I hold both IBHJ and QQQ?
IBHJ and QQQ have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHJ and QQQ?
IBHJ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 358 unique securities.
Which pays a higher dividend, IBHJ or QQQ?
IBHJ yields 6.69% while QQQ yields 0.44%, so IBHJ currently pays the higher dividend yield.
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