IGHG vs QQQ

IGHG vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IGHG offers more diversification with 186 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: IGHG

Side-by-Side Comparison

MetricIGHGQQQWinner
Expense Ratio0.30%0.18%
AUM$335M$496.3B
Dividend Yield5.12%0.44%
Holdings186108
YTD Return-1.00%+16.64%
1Y Return+0.64%+27.27%
3Y Return (annualized)+6.16%+25.96%
5Y Return (annualized)+4.74%+14.54%
Volatility (annualized)11.7%30.6%
Max Drawdown-43.7%-83.0%
Fund FamilyProSharesInvesco (US)
CategoryFixed IncomeEquity
InceptionNov 5, 2013Mar 10, 1999

IGHG vs QQQ Performance

ProShares Investment Grade-Interest Rate Hedged ETF (IGHG) is a ETF from ProShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IGHG returned +0.64% while QQQ returned +27.27%. Year to date, IGHG is down 1.00% versus a gain of 16.64% for QQQ.

Over three years, IGHG compounded at +6.16% per year against +25.96% for QQQ; over five years the annualized figures are +4.74% and +14.54% respectively. Across the full 13-year window we track, QQQ has the edge at +13.03% annualized vs +3.42%. 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 11.7% for IGHG. 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 -43.7% for IGHG 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IGHG charges 0.30% per year while QQQ charges 0.18%. On a $10,000 position that is $30 vs $18 annually, a gap of $12 per year that compounds over a long holding period. On income, IGHG currently yields 5.12% against 0.44% for QQQ.

Frequently Asked Questions

Which is cheaper, IGHG or QQQ?

IGHG has an expense ratio of 0.30% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $12 per year of difference.

Which performed better, IGHG or QQQ?

Over the past year IGHG returned +0.64% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), IGHG annualized +3.42% vs +13.03% for QQQ. Past performance does not guarantee future results.

Which is riskier, IGHG or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 11.7% for IGHG. Worst drawdown: IGHG -43.7% vs QQQ -83.0%.

Should I hold both IGHG and QQQ?

IGHG and QQQ have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, IGHG or QQQ?

IGHG yields 5.12% while QQQ yields 0.44%, so IGHG currently pays the higher dividend yield.

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