IDEF vs QQQ
iShares Defense Industrials Active ETF vs Invesco QQQ Trust, Series 1
Which is better, IDEF or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. IDEF is less concentrated, with 44.6% of the fund in its ten largest positions against 46.5%.
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
| Metric | IDEF | QQQ |
|---|---|---|
| Expense Ratio | 0.55% | 0.18%Best |
| AUM | $4.5B | $486.1B |
| Dividend Yield | 0.33% | 0.44% |
| Holdings | 131 | 107 |
| YTD Return | +2.11% | +17.54%Best |
| 1Y Return | +11.22% | +25.59%Best |
| 3Y Return (annualized) | - | +24.63% |
| 5Y Return (annualized) | - | +14.18% |
| Volatility (annualized) | 20.5% | 19.4%Best |
| Max Drawdown | -15.8% | -12.0%Best |
| $10,000 over 1.3 years | $12,932 | $14,136Best |
| Top 10 Weight | 44.6%Best | 46.5% |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | May 19, 2025 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 1.3 years row, are measured over the window both funds cover: May 21, 2025 to Sep 4, 2026 (1.3 years).
IDEF 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 1.3 years both funds cover.
IDEF vs QQQ Performance
iShares Defense Industrials Active ETF (IDEF) 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 IDEF returned +11.22% while QQQ returned +25.59%. Year to date, IDEF is up 2.11% versus a gain of 17.54% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IDEF has been the more volatile fund, with annualized monthly volatility of 20.5% compared with 19.4% for QQQ. 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 -15.8% for IDEF and -12.0% 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 0.35. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IDEF charges 0.55% per year while QQQ charges 0.18%. On a $10,000 position that is $55 vs $18 annually, a gap of $37 per year that compounds over a long holding period. On income, IDEF currently yields 0.33% against 0.44% for QQQ.
Holdings Overlap
6.6% of IDEF's money is in holdings QQQ also owns. 3.2% of QQQ's money is in holdings IDEF also owns.
IDEF and QQQ share little of their money.
4 positions in common, counted across the 116 positions we hold weights for in IDEF and 102 in QQQ, against full books of 131 and 107.
What only one of them owns
Our book lists 92 positions for QQQ that do not appear in our book for IDEF (94.3% of the fund), and 59 for IDEF that do not appear in QQQ (46.7%).
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 IDEF and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IDEF or QQQ?
IDEF has an expense ratio of 0.55% while QQQ charges 0.18%. QQQ is the cheaper option, by $37 a year on a $10,000 investment.
Which performed better, IDEF or QQQ?
Over the past year IDEF returned +11.22% vs +25.59% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), IDEF annualized +21.87% vs +30.51% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IDEF or QQQ?
IDEF has been the more volatile fund at 20.5% annualized versus 19.4% for QQQ. Worst drawdown: IDEF -15.8% vs QQQ -12.0%.
Should I hold both IDEF and QQQ?
IDEF and QQQ have a monthly-return correlation of 0.35, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IDEF and QQQ?
6.6% of IDEF's money is in holdings QQQ also owns. 3.2% of QQQ's is in holdings IDEF also owns. They hold 4 positions in common, counted across the 116 positions we hold weights for in IDEF and 102 in QQQ.
Which pays a higher dividend, IDEF or QQQ?
IDEF yields 0.33% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
Is QQQ better than IDEF?
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. IDEF is less concentrated, with 44.6% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.