IBIC vs QQQ
iShares iBonds Oct 2026 Term TIPS ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IBIC has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IBIC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.18% | |
| AUM | $77M | $455.8B | |
| Dividend Yield | 3.59% | 0.41% | |
| Holdings | 4 | 108 | |
| YTD Return | +2.70% | +19.68% | |
| 1Y Return | +3.97% | +26.75% | |
| 3Y Return (annualized) | +5.21% | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 1.1% | 30.6% | |
| Max Drawdown | -0.9% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 13, 2023 | Mar 10, 1999 |
IBIC vs QQQ Performance
iShares iBonds Oct 2026 Term TIPS ETF (IBIC) 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 IBIC returned +3.97% while QQQ returned +26.75%. Year to date, IBIC is up 2.70% versus a gain of 19.68% for QQQ.
Over three years, IBIC compounded at +5.21% per year against +26.25% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.15% annualized vs +5.21%. 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 1.1% for IBIC. 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 -0.9% for IBIC 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 0.01. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBIC 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, IBIC currently yields 3.59% against 0.41% for QQQ.
Holdings Overlap
IBIC and QQQ share 0 holdings out of 106 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, IBIC or QQQ?
IBIC has an expense ratio of 0.10% while QQQ charges 0.18%. IBIC is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, IBIC or QQQ?
Over the past year IBIC returned +3.97% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), IBIC annualized +5.21% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBIC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 1.1% for IBIC. Worst drawdown: IBIC -0.9% vs QQQ -83.0%.
Should I hold both IBIC and QQQ?
IBIC and QQQ have a monthly-return correlation of 0.01, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBIC and QQQ?
IBIC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, IBIC or QQQ?
IBIC yields 3.59% while QQQ yields 0.41%, so IBIC currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.