IBIE vs QQQ
iShares iBonds Oct 2028 Term TIPS ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IBIE has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IBIE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.18% | |
| AUM | $160M | $496.3B | |
| Dividend Yield | 4.96% | 0.44% | |
| Holdings | 8 | 108 | |
| YTD Return | +2.15% | +16.64% | |
| 1Y Return | +3.15% | +27.27% | |
| 3Y Return (annualized) | +5.32% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 2.5% | 30.6% | |
| Max Drawdown | -1.7% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 13, 2023 | Mar 10, 1999 |
IBIE vs QQQ Performance
iShares iBonds Oct 2028 Term TIPS ETF (IBIE) 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 IBIE returned +3.15% while QQQ returned +27.27%. Year to date, IBIE is up 2.15% versus a gain of 16.64% for QQQ.
Over three years, IBIE compounded at +5.32% per year against +25.96% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.03% annualized vs +5.32%. 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 2.5% for IBIE. 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 -1.7% for IBIE 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 0.13. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBIE 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, IBIE currently yields 4.96% against 0.44% for QQQ.
Holdings Overlap
IBIE and QQQ share 0 holdings out of 109 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, IBIE or QQQ?
IBIE has an expense ratio of 0.10% while QQQ charges 0.18%. IBIE is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, IBIE or QQQ?
Over the past year IBIE returned +3.15% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), IBIE annualized +5.32% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBIE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 2.5% for IBIE. Worst drawdown: IBIE -1.7% vs QQQ -83.0%.
Should I hold both IBIE and QQQ?
IBIE and QQQ have a monthly-return correlation of 0.13, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBIE and QQQ?
IBIE and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 109 unique securities.
Which pays a higher dividend, IBIE or QQQ?
IBIE yields 4.96% while QQQ yields 0.44%, so IBIE currently pays the higher dividend yield.
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