IBIK vs QQQ
iShares iBonds Oct 2034 Term TIPS ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IBIK has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IBIK | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.18% | |
| AUM | $89M | $496.3B | |
| Dividend Yield | 5.59% | 0.44% | |
| Holdings | 3 | 108 | |
| YTD Return | +0.95% | +16.64% | |
| 1Y Return | +2.73% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 4.7% | 30.6% | |
| Max Drawdown | -5.6% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 22, 2024 | Mar 10, 1999 |
IBIK vs QQQ Performance
iShares iBonds Oct 2034 Term TIPS ETF (IBIK) 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 IBIK returned +2.73% while QQQ returned +27.27%. Year to date, IBIK is up 0.95% 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 4.7% for IBIK. 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 -5.6% for IBIK 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 0.14. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBIK 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, IBIK currently yields 5.59% against 0.44% for QQQ.
Holdings Overlap
IBIK and QQQ share 0 holdings out of 104 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, IBIK or QQQ?
IBIK has an expense ratio of 0.10% while QQQ charges 0.18%. IBIK is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, IBIK or QQQ?
Over the past year IBIK returned +2.73% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), IBIK annualized +4.89% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBIK or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.7% for IBIK. Worst drawdown: IBIK -5.6% vs QQQ -83.0%.
Should I hold both IBIK and QQQ?
IBIK and QQQ have a monthly-return correlation of 0.14, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBIK and QQQ?
IBIK and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, IBIK or QQQ?
IBIK yields 5.59% while QQQ yields 0.44%, so IBIK currently pays the higher dividend yield.
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