IGEB vs QQQ
iShares Investment Grade Systematic Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ delivered stronger 1-year returns. IGEB offers more diversification with 475 holdings.
Side-by-Side Comparison
| Metric | IGEB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.18% | |
| AUM | $1.5B | $496.3B | |
| Dividend Yield | 5.14% | 0.44% | |
| Holdings | 475 | 108 | |
| YTD Return | -3.27% | +17.30% | |
| 1Y Return | -1.21% | +24.93% | |
| 3Y Return (annualized) | +4.96% | +26.19% | |
| 5Y Return (annualized) | -0.19% | +15.34% | |
| Volatility (annualized) | 7.3% | 30.6% | |
| Max Drawdown | -21.1% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 11, 2017 | Mar 10, 1999 |
IGEB vs QQQ Performance
iShares Investment Grade Systematic Bond ETF (IGEB) 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 IGEB returned -1.21% while QQQ returned +24.93%. Year to date, IGEB is down 3.27% versus a gain of 17.30% for QQQ.
Over three years, IGEB compounded at +4.96% per year against +26.19% for QQQ; over five years the annualized figures are -0.19% and +15.34% respectively. Across the full 9-year window we track, QQQ has the edge at +13.06% annualized vs +2.56%. 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 7.3% for IGEB. 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 -21.1% for IGEB 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGEB charges 0.18% per year while QQQ charges 0.18%. On a $10,000 position that is $18 vs $18 annually. On income, IGEB currently yields 5.14% against 0.44% for QQQ.
Holdings Overlap
IGEB and QQQ share 1 holdings out of 475 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IGEB | Weight in QQQ | Difference |
|---|---|---|---|
| TMUS | 0.36% | 0.82% | 0.46% |
Frequently Asked Questions
Which is cheaper, IGEB or QQQ?
IGEB has an expense ratio of 0.18% while QQQ charges 0.18%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, IGEB or QQQ?
Over the past year IGEB returned -1.21% vs +24.93% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), IGEB annualized +2.56% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, IGEB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 7.3% for IGEB. Worst drawdown: IGEB -21.1% vs QQQ -83.0%.
Should I hold both IGEB and QQQ?
IGEB and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGEB and QQQ?
IGEB and QQQ share 1 common holdings with a 0.4% weight overlap. Combined, they hold 475 unique securities.
Which pays a higher dividend, IGEB or QQQ?
IGEB yields 5.14% while QQQ yields 0.44%, so IGEB currently pays the higher dividend yield.
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