IBTO vs QQQ
iShares iBonds Dec 2033 Term Treasury ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IBTO has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IBTO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.18% | |
| AUM | $465M | $496.3B | |
| Dividend Yield | 4.17% | 0.44% | |
| Holdings | 12 | 108 | |
| YTD Return | -0.84% | +16.64% | |
| 1Y Return | +1.60% | +27.27% | |
| 3Y Return (annualized) | +4.51% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 6.6% | 30.6% | |
| Max Drawdown | -8.4% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 27, 2023 | Mar 10, 1999 |
IBTO vs QQQ Performance
iShares iBonds Dec 2033 Term Treasury ETF (IBTO) 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 IBTO returned +1.60% while QQQ returned +27.27%. Year to date, IBTO is down 0.84% versus a gain of 16.64% for QQQ.
Over three years, IBTO compounded at +4.51% per year against +25.96% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.03% annualized vs +3.19%. 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 6.6% for IBTO. 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 -8.4% for IBTO 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBTO 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, IBTO currently yields 4.17% against 0.44% for QQQ.
Holdings Overlap
IBTO 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, IBTO or QQQ?
IBTO has an expense ratio of 0.07% while QQQ charges 0.18%. IBTO is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, IBTO or QQQ?
Over the past year IBTO returned +1.60% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), IBTO annualized +3.19% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBTO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.6% for IBTO. Worst drawdown: IBTO -8.4% vs QQQ -83.0%.
Should I hold both IBTO and QQQ?
IBTO and QQQ have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBTO and QQQ?
IBTO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 107 unique securities.
Which pays a higher dividend, IBTO or QQQ?
IBTO yields 4.17% while QQQ yields 0.44%, so IBTO currently pays the higher dividend yield.
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