IBTP vs QQQ

Quick Verdict

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

Lower Fees: IBTPHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricIBTPQQQWinner
Expense Ratio0.07%0.18%
AUM$283M$455.8B
Dividend Yield4.03%0.41%
Holdings5108
YTD Return-0.87%+19.68%
1Y Return+1.17%+26.75%
3Y Return (annualized)-+26.25%
5Y Return (annualized)-+15.39%
Volatility (annualized)5.4%30.6%
Max Drawdown-6.9%-83.0%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionJun 11, 2024Mar 10, 1999

IBTP vs QQQ Performance

iShares iBonds Dec 2034 Term Treasury ETF (IBTP) 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 IBTP returned +1.17% while QQQ returned +26.75%. Year to date, IBTP is down 0.87% versus a gain of 19.68% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 5.4% 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 -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 0.02. They move independently enough that combining them can meaningfully diversify a portfolio.

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 4.03% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

IBTP 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, IBTP or QQQ?

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

Which performed better, IBTP or QQQ?

Over the past year IBTP returned +1.17% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), IBTP annualized +3.82% vs +13.15% for QQQ. Past performance does not guarantee future results.

Which is riskier, IBTP or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 5.4% for IBTP. Worst drawdown: IBTP -6.9% vs QQQ -83.0%.

Should I hold both IBTP and QQQ?

IBTP and QQQ have a monthly-return correlation of 0.02, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBTP and QQQ?

IBTP and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 107 unique securities.

Which pays a higher dividend, IBTP or QQQ?

IBTP yields 4.03% while QQQ yields 0.41%, so IBTP currently pays the higher dividend yield.

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