IBTJ vs QQQ
iShares iBonds Dec 2029 Term Treasury ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IBTJ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IBTJ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.18% | |
| AUM | $1.4B | $496.3B | |
| Dividend Yield | 3.79% | 0.44% | |
| Holdings | 36 | 108 | |
| YTD Return | +0.46% | +16.64% | |
| 1Y Return | +2.44% | +27.27% | |
| 3Y Return (annualized) | +4.58% | +25.96% | |
| 5Y Return (annualized) | -0.36% | +14.54% | |
| Volatility (annualized) | 5.5% | 30.6% | |
| Max Drawdown | -20.5% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2020 | Mar 10, 1999 |
IBTJ vs QQQ Performance
iShares iBonds Dec 2029 Term Treasury ETF (IBTJ) 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 IBTJ returned +2.44% while QQQ returned +27.27%. Year to date, IBTJ is up 0.46% versus a gain of 16.64% for QQQ.
Over three years, IBTJ compounded at +4.58% per year against +25.96% for QQQ; over five years the annualized figures are -0.36% and +14.54% respectively. Across the full 7-year window we track, QQQ has the edge at +13.03% annualized vs -0.13%. 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 5.5% for IBTJ. 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 -20.5% for IBTJ 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
IBTJ 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, IBTJ currently yields 3.79% against 0.44% for QQQ.
Holdings Overlap
IBTJ and QQQ share 0 holdings out of 131 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, IBTJ or QQQ?
IBTJ has an expense ratio of 0.07% while QQQ charges 0.18%. IBTJ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, IBTJ or QQQ?
Over the past year IBTJ returned +2.44% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), IBTJ annualized -0.13% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBTJ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.5% for IBTJ. Worst drawdown: IBTJ -20.5% vs QQQ -83.0%.
Should I hold both IBTJ and QQQ?
IBTJ 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 IBTJ and QQQ?
IBTJ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 131 unique securities.
Which pays a higher dividend, IBTJ or QQQ?
IBTJ yields 3.79% while QQQ yields 0.44%, so IBTJ currently pays the higher dividend yield.
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