IBTP vs QQQ

IBTP vs QQQ

Which is better, IBTP or QQQ?

Short Term Government Bond against Large Cap Growth.

IBTP has a lower expense ratio. QQQ led over 1Y and the full window.

Lower Fees: IBTPHigher Returns: QQQ

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricIBTPQQQ
Expense Ratio0.07%Best0.18%
AUM$292M$483.5B
Dividend Yield4.09%0.44%
Holdings6107
YTD Return-2.81%+17.95%Best
1Y Return-2.16%+21.77%Best
3Y Return (annualized)-+25.63%
5Y Return (annualized)-+15.24%
Volatility (annualized)5.5%Best17.6%
Max Drawdown-6.9%Best-22.8%
$10,000 over 2.3 years$10,644$15,497Best
Top 10 Weight-46.5%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryFixed IncomeEquity
StyleShort Term Government BondLarge Cap Growth
InceptionJun 11, 2024Mar 10, 1999

Volatility and max drawdown, and the $10,000 over 2.3 years row, are measured over the window both funds cover: Jun 12, 2024 to Sep 18, 2026 (2.3 years).

IBTP vs QQQ growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.3 years both funds cover.

IBTP vs QQQ Performance

iShares iBonds Dec 2034 Term Treasury ETF (IBTP) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year IBTP returned -2.16% while QQQ returned +21.77%. Year to date, IBTP is down 2.81% versus a gain of 17.95% for QQQ.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 17.6% compared with 5.5% for IBTP. 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 -6.9% for IBTP and -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.02. They move largely independently of each other.

Fees and Cost Over Time

IBTP 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, IBTP currently yields 4.09% against 0.44% for QQQ.

Holdings Overlap

We hold position weights for 5 holdings in IBTP and 102 in QQQ, totalling 100.6% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 5 positions we hold weights for in IBTP and 102 in QQQ, against full books of 6 and 107.

What only one of them owns

Our book lists 96 positions for QQQ that do not appear in our book for IBTP (97.5% of the fund), and 5 for IBTP that do not appear in QQQ (100.6%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

You are not choosing between two funds in isolation.

Whichever of IBTP and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

IBTPQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IBTP or QQQ?

IBTP has an expense ratio of 0.07% while QQQ charges 0.18%. IBTP is the cheaper option, by $11 a year on a $10,000 investment.

Which performed better, IBTP or QQQ?

Over the past year IBTP returned -2.16% vs +21.77% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), IBTP annualized +2.75% vs +20.98% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IBTP or QQQ?

QQQ has been the more volatile fund at 17.6% annualized versus 5.5% for IBTP. Worst drawdown: IBTP -6.9% vs QQQ -22.8%.

Should I hold both IBTP and QQQ?

IBTP and QQQ have a monthly-return correlation of 0.02, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, IBTP or QQQ?

IBTP yields 4.09% while QQQ yields 0.44%, so IBTP currently pays the higher dividend yield.

Is QQQ better than IBTP?

IBTP has a lower expense ratio. QQQ led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.