IBHL vs QQQ
iShares iBonds 2032 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. IBHL offers more diversification with 218 holdings.
Side-by-Side Comparison
| Metric | IBHL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $28M | $496.3B | |
| Dividend Yield | 6.32% | 0.44% | |
| Holdings | 218 | 108 | |
| YTD Return | -1.40% | +16.64% | |
| 1Y Return | +1.72% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 3.5% | 30.6% | |
| Max Drawdown | -3.7% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 25, 2025 | Mar 10, 1999 |
IBHL vs QQQ Performance
iShares iBonds 2032 Term High Yield and Income ETF (IBHL) 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 IBHL returned +1.72% while QQQ returned +27.27%. Year to date, IBHL is down 1.40% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.5% for IBHL. 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 -3.7% for IBHL 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
IBHL 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, IBHL currently yields 6.32% against 0.44% for QQQ.
Holdings Overlap
IBHL and QQQ share 0 holdings out of 277 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, IBHL or QQQ?
IBHL 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, IBHL or QQQ?
Over the past year IBHL returned +1.72% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), IBHL annualized +4.48% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBHL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.5% for IBHL. Worst drawdown: IBHL -3.7% vs QQQ -83.0%.
Should I hold both IBHL and QQQ?
IBHL 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 IBHL and QQQ?
IBHL and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 277 unique securities.
Which pays a higher dividend, IBHL or QQQ?
IBHL yields 6.32% while QQQ yields 0.44%, so IBHL currently pays the higher dividend yield.
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