IBTH vs QQQ

Quick Verdict

IBTH has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: IBTHHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricIBTHQQQWinner
Expense Ratio0.07%0.18%
AUM$2.3B$455.8B
Dividend Yield3.82%0.41%
Holdings53108
YTD Return+1.27%+18.31%
1Y Return+3.10%+25.37%
3Y Return (annualized)+4.45%+25.79%
5Y Return (annualized)+0.42%+15.20%
Volatility (annualized)4.2%30.6%
Max Drawdown-16.4%-83.0%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionFeb 25, 2020Mar 10, 1999

IBTH vs QQQ Performance

iShares iBonds Dec 2027 Term Treasury ETF (IBTH) 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 IBTH returned +3.10% while QQQ returned +25.37%. Year to date, IBTH is up 1.27% versus a gain of 18.31% for QQQ.

Over three years, IBTH compounded at +4.45% per year against +25.79% for QQQ; over five years the annualized figures are +0.42% and +15.20% respectively. Across the full 7-year window we track, QQQ has the edge at +13.10% annualized vs +0.58%. 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 4.2% for IBTH. 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 -16.4% for IBTH 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IBTH 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, IBTH currently yields 3.82% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

IBTH and QQQ share 0 holdings out of 152 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, IBTH or QQQ?

IBTH has an expense ratio of 0.07% while QQQ charges 0.18%. IBTH is the cheaper option. On a $10,000 investment, that is $11 per year of difference.

Which performed better, IBTH or QQQ?

Over the past year IBTH returned +3.10% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), IBTH annualized +0.58% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, IBTH or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 4.2% for IBTH. Worst drawdown: IBTH -16.4% vs QQQ -83.0%.

Should I hold both IBTH and QQQ?

IBTH and QQQ have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBTH and QQQ?

IBTH and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 152 unique securities.

Which pays a higher dividend, IBTH or QQQ?

IBTH yields 3.82% while QQQ yields 0.41%, so IBTH currently pays the higher dividend yield.

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