IDU vs QQQ
iShares US Utilities ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IDU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $1.4B | $496.3B | |
| Dividend Yield | 2.22% | 0.44% | |
| Holdings | 49 | 108 | |
| YTD Return | +0.58% | +16.64% | |
| 1Y Return | +2.18% | +27.27% | |
| 3Y Return (annualized) | +14.31% | +25.96% | |
| 5Y Return (annualized) | +7.68% | +14.54% | |
| Volatility (annualized) | 15.0% | 30.6% | |
| Max Drawdown | -56.4% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Mar 10, 1999 |
IDU vs QQQ Performance
iShares US Utilities ETF (IDU) 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 IDU returned +2.18% while QQQ returned +27.27%. Year to date, IDU is up 0.58% versus a gain of 16.64% for QQQ.
Over three years, IDU compounded at +14.31% per year against +25.96% for QQQ; over five years the annualized figures are +7.68% and +14.54% respectively. Across the full 26-year window we track, QQQ has the edge at +13.03% annualized vs +5.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 15.0% for IDU. 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 -56.4% for IDU 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IDU charges 0.38% per year while QQQ charges 0.18%. On a $10,000 position that is $38 vs $18 annually, a gap of $20 per year that compounds over a long holding period. On income, IDU currently yields 2.22% against 0.44% for QQQ.
Holdings Overlap
IDU and QQQ share 4 holdings out of 144 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IDU or QQQ?
IDU has an expense ratio of 0.38% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, IDU or QQQ?
Over the past year IDU returned +2.18% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (26 years), IDU annualized +5.05% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IDU or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.0% for IDU. Worst drawdown: IDU -56.4% vs QQQ -83.0%.
Should I hold both IDU and QQQ?
IDU and QQQ have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IDU and QQQ?
IDU and QQQ share 4 common holdings with a 1.1% weight overlap. Combined, they hold 144 unique securities.
Which pays a higher dividend, IDU or QQQ?
IDU yields 2.22% while QQQ yields 0.44%, so IDU currently pays the higher dividend yield.
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