IBND vs QQQ
State Street SPDR Bloomberg International Corporate Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IBND offers more diversification with 948 holdings.
Side-by-Side Comparison
| Metric | IBND | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $462M | $496.3B | |
| Dividend Yield | 2.80% | 0.44% | |
| Holdings | 948 | 108 | |
| YTD Return | -0.46% | +16.23% | |
| 1Y Return | +0.50% | +26.23% | |
| 3Y Return (annualized) | +6.33% | +25.75% | |
| 5Y Return (annualized) | -0.95% | +14.78% | |
| Volatility (annualized) | 9.6% | 30.6% | |
| Max Drawdown | -35.6% | -83.0% | |
| Fund Family | SPDR State Street Global Advisors | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 19, 2010 | Mar 10, 1999 |
IBND vs QQQ Performance
State Street SPDR Bloomberg International Corporate Bond ETF (IBND) is a ETF from SPDR State Street Global Advisors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IBND returned +0.50% while QQQ returned +26.23%. Year to date, IBND is down 0.46% versus a gain of 16.23% for QQQ.
Over three years, IBND compounded at +6.33% per year against +25.75% for QQQ; over five years the annualized figures are -0.95% and +14.78% respectively. Across the full 16-year window we track, QQQ has the edge at +13.02% annualized vs +0.74%. 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 9.6% for IBND. 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 -35.6% for IBND 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBND charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, IBND currently yields 2.80% against 0.44% for QQQ.
Holdings Overlap
IBND and QQQ share 0 holdings out of 103 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, IBND or QQQ?
IBND has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, IBND or QQQ?
Over the past year IBND returned +0.50% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), IBND annualized +0.74% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBND or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 9.6% for IBND. Worst drawdown: IBND -35.6% vs QQQ -83.0%.
Should I hold both IBND and QQQ?
IBND and QQQ have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBND and QQQ?
IBND and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, IBND or QQQ?
IBND yields 2.80% while QQQ yields 0.44%, so IBND currently pays the higher dividend yield.
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