ICVT vs QQQ

ICVT vs QQQ

Which is better, ICVT or QQQ?

Convertibles against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.

Lower Fees: QQQHigher 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

MetricICVTQQQ
Expense Ratio0.20%0.18%Best
AUM$7.7B$483.5B
Dividend Yield1.40%0.44%
Holdings377107
YTD Return+13.06%+17.21%Best
1Y Return+15.34%+22.10%Best
3Y Return (annualized)+16.56%+25.27%Best
5Y Return (annualized)+5.08%+14.60%Best
Volatility (annualized)14.6%Best18.9%
Max Drawdown-33.3%Best-35.1%
$10,000 over 5 years$12,812$19,766Best
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryConvertibleEquity
StyleConvertiblesLarge Cap Growth
InceptionJun 2, 2015Mar 10, 1999

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jun 4, 2015 to Sep 17, 2026 (11.3 years).

ICVT 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 11.3 years both funds cover.

ICVT vs QQQ Performance

iShares Convertible Bond ETF (ICVT) 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 ICVT returned +15.34% while QQQ returned +22.10%. Year to date, ICVT is up 13.06% versus a gain of 17.21% for QQQ.

Over three years, ICVT compounded at +16.56% per year against +25.27% for QQQ; over five years the annualized figures are +5.08% and +14.60% respectively. Across the full 11-year window we track, QQQ has the edge at +18.45% annualized vs +10.82%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 18.9% compared with 14.6% for ICVT. 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 -33.3% for ICVT and -35.1% 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 0.80. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

ICVT charges 0.20% per year while QQQ charges 0.18%. On a $10,000 position that is $20 vs $18 annually, a gap of $2 per year that compounds over a long holding period. On income, ICVT currently yields 1.40% against 0.44% for QQQ.

Holdings Overlap

We hold position weights for 130 holdings in ICVT and 102 in QQQ, totalling 36.6% 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 130 positions we hold weights for in ICVT and 102 in QQQ, against full books of 377 and 107.

You are not choosing between two funds in isolation.

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

ICVTQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, ICVT or QQQ?

ICVT has an expense ratio of 0.20% while QQQ charges 0.18%. QQQ is the cheaper option, by $2 a year on a $10,000 investment.

Which performed better, ICVT or QQQ?

Over the past year ICVT returned +15.34% vs +22.10% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), ICVT annualized +10.82% vs +18.45% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, ICVT or QQQ?

QQQ has been the more volatile fund at 18.9% annualized versus 14.6% for ICVT. Worst drawdown: ICVT -33.3% vs QQQ -35.1%.

Should I hold both ICVT and QQQ?

ICVT and QQQ have a monthly-return correlation of 0.80, 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, ICVT or QQQ?

ICVT yields 1.40% while QQQ yields 0.44%, so ICVT currently pays the higher dividend yield.

Is QQQ better than ICVT?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.