IBII vs QQQ
iShares iBonds Oct 2032 Term TIPS ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IBII has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IBII | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.18% | |
| AUM | $54M | $496.3B | |
| Dividend Yield | 5.21% | 0.44% | |
| Holdings | 5 | 108 | |
| YTD Return | +1.19% | +16.64% | |
| 1Y Return | +2.43% | +27.27% | |
| 3Y Return (annualized) | +5.44% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 5.0% | 30.6% | |
| Max Drawdown | -4.7% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 19, 2023 | Mar 10, 1999 |
IBII vs QQQ Performance
iShares iBonds Oct 2032 Term TIPS ETF (IBII) 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 IBII returned +2.43% while QQQ returned +27.27%. Year to date, IBII is up 1.19% versus a gain of 16.64% for QQQ.
Over three years, IBII compounded at +5.44% per year against +25.96% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.03% annualized vs +5.44%. 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 IBII. 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 -4.7% for IBII 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 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBII 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, IBII currently yields 5.21% against 0.44% for QQQ.
Holdings Overlap
IBII 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, IBII or QQQ?
IBII has an expense ratio of 0.10% while QQQ charges 0.18%. IBII is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, IBII or QQQ?
Over the past year IBII returned +2.43% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), IBII annualized +5.44% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBII or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.0% for IBII. Worst drawdown: IBII -4.7% vs QQQ -83.0%.
Should I hold both IBII and QQQ?
IBII and QQQ have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBII and QQQ?
IBII and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, IBII or QQQ?
IBII yields 5.21% while QQQ yields 0.44%, so IBII currently pays the higher dividend yield.
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