IGM vs QQQ
iShares Expanded Tech Sector ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. IGM delivered stronger 1-year returns. IGM offers more diversification with 271 holdings.
Side-by-Side Comparison
| Metric | IGM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.18% | |
| AUM | $9.9B | $455.8B | |
| Dividend Yield | 0.13% | 0.41% | |
| Holdings | 301 | 108 | |
| YTD Return | +26.00% | +17.85% | |
| 1Y Return | +39.40% | +26.45% | |
| 3Y Return (annualized) | +36.71% | +26.07% | |
| 5Y Return (annualized) | +19.13% | +15.16% | |
| Volatility (annualized) | 22.6% | 30.6% | |
| Max Drawdown | -65.6% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 13, 2001 | Mar 10, 1999 |
IGM vs QQQ Performance
iShares Expanded Tech Sector ETF (IGM) 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 IGM returned +39.40% while QQQ returned +26.45%. Year to date, IGM is up 26.00% versus a gain of 17.85% for QQQ.
Over three years, IGM compounded at +36.71% per year against +26.07% for QQQ; over five years the annualized figures are +19.13% and +15.16% respectively. Across the full 25-year window we track, QQQ has the edge at +13.09% annualized vs +12.21%. 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 22.6% for IGM. 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 -65.6% for IGM 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IGM charges 0.39% per year while QQQ charges 0.18%. On a $10,000 position that is $39 vs $18 annually, a gap of $21 per year that compounds over a long holding period. On income, IGM currently yields 0.13% against 0.41% for QQQ.
Holdings Overlap
IGM and QQQ share 46 holdings out of 328 unique holdings combined, representing a 67.9% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, IGM or QQQ?
IGM has an expense ratio of 0.39% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, IGM or QQQ?
Over the past year IGM returned +39.40% vs +26.45% for QQQ, so IGM leads on 1-year performance. Over the longest common window we track (25 years), IGM annualized +12.21% vs +13.09% for QQQ. Past performance does not guarantee future results.
Which is riskier, IGM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 22.6% for IGM. Worst drawdown: IGM -65.6% vs QQQ -83.0%.
Should I hold both IGM and QQQ?
IGM and QQQ have a monthly-return correlation of 0.98, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between IGM and QQQ?
IGM and QQQ share 46 common holdings with a 67.9% weight overlap. Combined, they hold 328 unique securities.
Which pays a higher dividend, IGM or QQQ?
IGM yields 0.13% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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