IEO vs QQQ
iShares US Oil & Gas Exploration & Production ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. IEO delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IEO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.18% | |
| AUM | $589M | $496.3B | |
| Dividend Yield | 1.87% | 0.44% | |
| Holdings | 50 | 108 | |
| YTD Return | +51.16% | +16.64% | |
| 1Y Return | +57.96% | +27.27% | |
| 3Y Return (annualized) | +14.98% | +25.96% | |
| 5Y Return (annualized) | +26.55% | +14.54% | |
| Volatility (annualized) | 32.2% | 30.6% | |
| Max Drawdown | -80.7% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Mar 10, 1999 |
IEO vs QQQ Performance
iShares US Oil & Gas Exploration & Production ETF (IEO) 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 IEO returned +57.96% while QQQ returned +27.27%. Year to date, IEO is up 51.16% versus a gain of 16.64% for QQQ.
Over three years, IEO compounded at +14.98% per year against +25.96% for QQQ; over five years the annualized figures are +26.55% and +14.54% respectively. Across the full 20-year window we track, QQQ has the edge at +13.03% annualized vs +5.77%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IEO has been the more volatile fund, with annualized monthly volatility of 32.2% compared with 30.6% 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 -80.7% for IEO 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IEO charges 0.37% per year while QQQ charges 0.18%. On a $10,000 position that is $37 vs $18 annually, a gap of $19 per year that compounds over a long holding period. On income, IEO currently yields 1.87% against 0.44% for QQQ.
Holdings Overlap
IEO and QQQ share 1 holdings out of 148 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IEO | Weight in QQQ | Difference |
|---|---|---|---|
| FANG | 4.20% | 0.23% | 3.97% |
Frequently Asked Questions
Which is cheaper, IEO or QQQ?
IEO has an expense ratio of 0.37% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, IEO or QQQ?
Over the past year IEO returned +57.96% vs +27.27% for QQQ, so IEO leads on 1-year performance. Over the longest common window we track (20 years), IEO annualized +5.77% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IEO or QQQ?
IEO has been the more volatile fund at 32.2% annualized versus 30.6% for QQQ. Worst drawdown: IEO -80.7% vs QQQ -83.0%.
Should I hold both IEO and QQQ?
IEO and QQQ have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IEO and QQQ?
IEO and QQQ share 1 common holdings with a 0.2% weight overlap. Combined, they hold 148 unique securities.
Which pays a higher dividend, IEO or QQQ?
IEO yields 1.87% while QQQ yields 0.44%, so IEO currently pays the higher dividend yield.
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