IGIB vs QQQ
iShares 5-10 Year Investment Grade Corporate Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IGIB has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | IGIB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.18% | |
| AUM | $18.6B | $455.8B | |
| Dividend Yield | 4.80% | 0.41% | |
| Holdings | 2,986 | 108 | |
| YTD Return | -0.64% | +18.31% | |
| 1Y Return | +2.20% | +25.37% | |
| 3Y Return (annualized) | +6.25% | +25.79% | |
| 5Y Return (annualized) | +0.93% | +15.20% | |
| Volatility (annualized) | 5.7% | 30.6% | |
| Max Drawdown | -20.6% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 5, 2007 | Mar 10, 1999 |
IGIB vs QQQ Performance
iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB) 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 IGIB returned +2.20% while QQQ returned +25.37%. Year to date, IGIB is down 0.64% versus a gain of 18.31% for QQQ.
Over three years, IGIB compounded at +6.25% per year against +25.79% for QQQ; over five years the annualized figures are +0.93% and +15.20% respectively. Across the full 20-year window we track, QQQ has the edge at +13.10% annualized vs +1.27%. 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 5.7% for IGIB. 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 -20.6% for IGIB 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGIB charges 0.04% per year while QQQ charges 0.18%. On a $10,000 position that is $4 vs $18 annually, a gap of $14 per year that compounds over a long holding period. On income, IGIB currently yields 4.80% against 0.41% for QQQ.
Holdings Overlap
IGIB and QQQ share 0 holdings out of 117 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, IGIB or QQQ?
IGIB has an expense ratio of 0.04% while QQQ charges 0.18%. IGIB is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, IGIB or QQQ?
Over the past year IGIB returned +2.20% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), IGIB annualized +1.27% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, IGIB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.7% for IGIB. Worst drawdown: IGIB -20.6% vs QQQ -83.0%.
Should I hold both IGIB and QQQ?
IGIB and QQQ have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGIB and QQQ?
IGIB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 117 unique securities.
Which pays a higher dividend, IGIB or QQQ?
IGIB yields 4.80% while QQQ yields 0.41%, so IGIB currently pays the higher dividend yield.
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