IBTF vs QQQ
iShares iBonds Dec 2025 Term Treasury ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IBTF has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | IBTF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.18% | |
| AUM | $1.4B | $455.8B | |
| Dividend Yield | 3.85% | 0.41% | |
| Holdings | 6 | 108 | |
| YTD Return | +3.86% | +17.46% | |
| 1Y Return | +4.10% | +26.02% | |
| 3Y Return (annualized) | +3.99% | +25.51% | |
| 5Y Return (annualized) | +0.69% | +15.12% | |
| Volatility (annualized) | 2.7% | 30.6% | |
| Max Drawdown | -20.8% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2020 | Mar 10, 1999 |
IBTF vs QQQ Performance
iShares iBonds Dec 2025 Term Treasury ETF (IBTF) 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 IBTF returned +4.10% while QQQ returned +26.02%. Year to date, IBTF is up 3.86% versus a gain of 17.46% for QQQ.
Over three years, IBTF compounded at +3.99% per year against +25.51% for QQQ; over five years the annualized figures are +0.69% and +15.12% respectively. Across the full 6-year window we track, QQQ has the edge at +13.08% annualized vs +1.19%. 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 2.7% for IBTF. 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 -20.8% for IBTF 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBTF charges 0.07% per year while QQQ charges 0.18%. On a $10,000 position that is $7 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, IBTF currently yields 3.85% against 0.41% for QQQ.
Holdings Overlap
IBTF and QQQ share 0 holdings out of 107 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, IBTF or QQQ?
IBTF has an expense ratio of 0.07% while QQQ charges 0.18%. IBTF is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, IBTF or QQQ?
Over the past year IBTF returned +4.10% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), IBTF annualized +1.19% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBTF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 2.7% for IBTF. Worst drawdown: IBTF -20.8% vs QQQ -83.0%.
Should I hold both IBTF and QQQ?
IBTF and QQQ have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBTF and QQQ?
IBTF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 107 unique securities.
Which pays a higher dividend, IBTF or QQQ?
IBTF yields 3.85% while QQQ yields 0.41%, so IBTF currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.