IBMT vs QQQ

Quick Verdict

QQQ delivered stronger 1-year returns. IBMT offers more diversification with 163 holdings.

Lower Fees: TiedHigher Returns: QQQMore Diversified: IBMT

Side-by-Side Comparison

MetricIBMTQQQWinner
Expense Ratio0.18%0.18%
AUM$128M$455.8B
Dividend Yield2.39%0.41%
Holdings927108
YTD Return-1.28%+19.68%
1Y Return+0.93%+26.75%
3Y Return (annualized)-+26.25%
5Y Return (annualized)-+15.39%
Volatility (annualized)3.8%30.6%
Max Drawdown-3.7%-83.0%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionMar 25, 2025Mar 10, 1999

IBMT vs QQQ Performance

iShares iBonds Dec 2031 Term Muni Bond ETF (IBMT) 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 IBMT returned +0.93% while QQQ returned +26.75%. Year to date, IBMT is down 1.28% versus a gain of 19.68% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.8% for IBMT. 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 -3.7% for IBMT 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IBMT charges 0.18% per year while QQQ charges 0.18%. On a $10,000 position that is $18 vs $18 annually. On income, IBMT currently yields 2.39% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

IBMT and QQQ share 0 holdings out of 266 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, IBMT or QQQ?

IBMT 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, IBMT or QQQ?

Over the past year IBMT returned +0.93% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), IBMT annualized +4.12% vs +13.15% for QQQ. Past performance does not guarantee future results.

Which is riskier, IBMT or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 3.8% for IBMT. Worst drawdown: IBMT -3.7% vs QQQ -83.0%.

Should I hold both IBMT and QQQ?

IBMT and QQQ have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBMT and QQQ?

IBMT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 266 unique securities.

Which pays a higher dividend, IBMT or QQQ?

IBMT yields 2.39% while QQQ yields 0.41%, so IBMT currently pays the higher dividend yield.

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