IDEF vs QQQ
iShares Defense Industrials Active ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IDEF offers more diversification with 116 holdings.
Side-by-Side Comparison
| Metric | IDEF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.18% | |
| AUM | $4.2B | $455.8B | |
| Dividend Yield | 0.34% | 0.41% | |
| Holdings | 131 | 108 | |
| YTD Return | +11.20% | +17.85% | |
| 1Y Return | +21.98% | +26.45% | |
| 3Y Return (annualized) | - | +26.07% | |
| 5Y Return (annualized) | - | +15.16% | |
| Volatility (annualized) | 21.8% | 30.6% | |
| Max Drawdown | -15.8% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 19, 2025 | Mar 10, 1999 |
IDEF vs QQQ Performance
iShares Defense Industrials Active ETF (IDEF) 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 IDEF returned +21.98% while QQQ returned +26.45%. Year to date, IDEF is up 11.20% versus a gain of 17.85% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 21.8% for IDEF. 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 -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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
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 0.34% against 0.41% for QQQ.
Holdings Overlap
IDEF and QQQ share 4 holdings out of 215 unique holdings combined, representing a 3.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $37 per year of difference.
Which performed better, IDEF or QQQ?
Over the past year IDEF returned +21.98% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), IDEF annualized +32.14% vs +13.09% for QQQ. Past performance does not guarantee future results.
Which is riskier, IDEF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.8% for IDEF. Worst drawdown: IDEF -15.8% vs QQQ -83.0%.
Should I hold both IDEF and QQQ?
IDEF and QQQ have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IDEF and QQQ?
IDEF and QQQ share 4 common holdings with a 3.2% weight overlap. Combined, they hold 215 unique securities.
Which pays a higher dividend, IDEF or QQQ?
IDEF yields 0.34% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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