IBTI vs QQQ
iShares iBonds Dec 2028 Term Treasury ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IBTI has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IBTI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.18% | |
| AUM | $2.0B | $496.3B | |
| Dividend Yield | 3.79% | 0.44% | |
| Holdings | 47 | 108 | |
| YTD Return | +0.96% | +16.64% | |
| 1Y Return | +2.97% | +27.27% | |
| 3Y Return (annualized) | +4.65% | +25.96% | |
| 5Y Return (annualized) | +0.01% | +14.54% | |
| Volatility (annualized) | 4.8% | 30.6% | |
| Max Drawdown | -18.7% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2020 | Mar 10, 1999 |
IBTI vs QQQ Performance
iShares iBonds Dec 2028 Term Treasury ETF (IBTI) 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 IBTI returned +2.97% while QQQ returned +27.27%. Year to date, IBTI is up 0.96% versus a gain of 16.64% for QQQ.
Over three years, IBTI compounded at +4.65% per year against +25.96% for QQQ; over five years the annualized figures are +0.01% and +14.54% respectively. Across the full 7-year window we track, QQQ has the edge at +13.03% annualized vs +0.22%. 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 4.8% for IBTI. 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 -18.7% for IBTI 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBTI 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, IBTI currently yields 3.79% against 0.44% for QQQ.
Holdings Overlap
IBTI and QQQ share 0 holdings out of 138 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, IBTI or QQQ?
IBTI has an expense ratio of 0.07% while QQQ charges 0.18%. IBTI is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, IBTI or QQQ?
Over the past year IBTI returned +2.97% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), IBTI annualized +0.22% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBTI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.8% for IBTI. Worst drawdown: IBTI -18.7% vs QQQ -83.0%.
Should I hold both IBTI and QQQ?
IBTI and QQQ have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBTI and QQQ?
IBTI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 138 unique securities.
Which pays a higher dividend, IBTI or QQQ?
IBTI yields 3.79% while QQQ yields 0.44%, so IBTI currently pays the higher dividend yield.
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