IEI vs QQQ
iShares 3-7 Year Treasury Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IEI has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IEI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $17.7B | $496.3B | |
| Dividend Yield | 3.67% | 0.44% | |
| Holdings | 85 | 108 | |
| YTD Return | -0.33% | +16.64% | |
| 1Y Return | +1.67% | +27.27% | |
| 3Y Return (annualized) | +4.32% | +25.96% | |
| 5Y Return (annualized) | +0.21% | +14.54% | |
| Volatility (annualized) | 3.9% | 30.6% | |
| Max Drawdown | -15.0% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 5, 2007 | Mar 10, 1999 |
IEI vs QQQ Performance
iShares 3-7 Year Treasury Bond ETF (IEI) 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 IEI returned +1.67% while QQQ returned +27.27%. Year to date, IEI is down 0.33% versus a gain of 16.64% for QQQ.
Over three years, IEI compounded at +4.32% per year against +25.96% for QQQ; over five years the annualized figures are +0.21% and +14.54% respectively. Across the full 20-year window we track, QQQ has the edge at +13.03% annualized vs +1.48%. 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 3.9% for IEI. 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 -15.0% for IEI 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 -0.06. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IEI charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, IEI currently yields 3.67% against 0.44% for QQQ.
Holdings Overlap
IEI and QQQ share 0 holdings out of 164 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, IEI or QQQ?
IEI has an expense ratio of 0.15% while QQQ charges 0.18%. IEI is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, IEI or QQQ?
Over the past year IEI returned +1.67% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), IEI annualized +1.48% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IEI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.9% for IEI. Worst drawdown: IEI -15.0% vs QQQ -83.0%.
Should I hold both IEI and QQQ?
IEI and QQQ have a monthly-return correlation of -0.06, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IEI and QQQ?
IEI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 164 unique securities.
Which pays a higher dividend, IEI or QQQ?
IEI yields 3.67% while QQQ yields 0.44%, so IEI currently pays the higher dividend yield.
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