IBIT vs QQQ
iShares Bitcoin Trust ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | IBIT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $47.7B | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 2 | 108 | |
| YTD Return | -29.56% | +19.68% | |
| 1Y Return | -48.63% | +26.75% | |
| 3Y Return (annualized) | - | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 52.8% | 30.6% | |
| Max Drawdown | -53.3% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 5, 2024 | Mar 10, 1999 |
IBIT vs QQQ Performance
iShares Bitcoin Trust ETF (IBIT) 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 IBIT returned -48.63% while QQQ returned +26.75%. Year to date, IBIT is down 29.56% versus a gain of 19.68% for QQQ.
Risk: Volatility and Drawdowns
IBIT has been the more volatile fund, with annualized monthly volatility of 52.8% compared with 30.6% for QQQ. 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 -53.3% for IBIT 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBIT charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, IBIT currently yields 0.00% against 0.41% for QQQ.
Frequently Asked Questions
Which is cheaper, IBIT or QQQ?
IBIT has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, IBIT or QQQ?
Over the past year IBIT returned -48.63% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), IBIT annualized +12.21% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBIT or QQQ?
IBIT has been the more volatile fund at 52.8% annualized versus 30.6% for QQQ. Worst drawdown: IBIT -53.3% vs QQQ -83.0%.
Should I hold both IBIT and QQQ?
IBIT and QQQ have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, IBIT or QQQ?
IBIT yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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