IBMO vs QQQ
Ishares Ibonds Dec 2026 Term Muni Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ delivered stronger 1-year returns. IBMO offers more diversification with 273 holdings.
Side-by-Side Comparison
| Metric | IBMO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.18% | |
| AUM | $581M | $455.8B | |
| Dividend Yield | 2.39% | 0.41% | |
| Holdings | 743 | 108 | |
| YTD Return | +0.02% | +18.31% | |
| 1Y Return | +0.71% | +25.37% | |
| 3Y Return (annualized) | +2.46% | +25.79% | |
| 5Y Return (annualized) | +0.29% | +15.20% | |
| Volatility (annualized) | 3.7% | 30.6% | |
| Max Drawdown | -14.8% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 2, 2019 | Mar 10, 1999 |
IBMO vs QQQ Performance
Ishares Ibonds Dec 2026 Term Muni Bond ETF (IBMO) 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 IBMO returned +0.71% while QQQ returned +25.37%. Year to date, IBMO is up 0.02% versus a gain of 18.31% for QQQ.
Over three years, IBMO compounded at +2.46% per year against +25.79% for QQQ; over five years the annualized figures are +0.29% and +15.20% respectively. Across the full 7-year window we track, QQQ has the edge at +13.10% annualized vs +1.61%. 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 3.7% for IBMO. 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 -14.8% for IBMO 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBMO charges 0.18% per year while QQQ charges 0.18%. On a $10,000 position that is $18 vs $18 annually. On income, IBMO currently yields 2.39% against 0.41% for QQQ.
Holdings Overlap
IBMO and QQQ share 0 holdings out of 376 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, IBMO or QQQ?
IBMO has an expense ratio of 0.18% while QQQ charges 0.18%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, IBMO or QQQ?
Over the past year IBMO returned +0.71% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), IBMO annualized +1.61% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBMO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.7% for IBMO. Worst drawdown: IBMO -14.8% vs QQQ -83.0%.
Should I hold both IBMO and QQQ?
IBMO and QQQ have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBMO and QQQ?
IBMO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 376 unique securities.
Which pays a higher dividend, IBMO or QQQ?
IBMO yields 2.39% while QQQ yields 0.41%, so IBMO currently pays the higher dividend yield.
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