IGOV vs QQQ
iShares International Treasury Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IGOV offers more diversification with 970 holdings.
Side-by-Side Comparison
| Metric | IGOV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $1.5B | $496.3B | |
| Dividend Yield | 1.43% | 0.44% | |
| Holdings | 970 | 108 | |
| YTD Return | -0.26% | +16.64% | |
| 1Y Return | +0.49% | +27.27% | |
| 3Y Return (annualized) | +3.27% | +25.96% | |
| 5Y Return (annualized) | -4.26% | +14.54% | |
| Volatility (annualized) | 8.8% | 30.6% | |
| Max Drawdown | -35.9% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 21, 2009 | Mar 10, 1999 |
IGOV vs QQQ Performance
iShares International Treasury Bond ETF (IGOV) 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 IGOV returned +0.49% while QQQ returned +27.27%. Year to date, IGOV is down 0.26% versus a gain of 16.64% for QQQ.
Over three years, IGOV compounded at +3.27% per year against +25.96% for QQQ; over five years the annualized figures are -4.26% and +14.54% respectively. Across the full 18-year window we track, QQQ has the edge at +13.03% annualized vs +0.11%. 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 8.8% for IGOV. 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 -35.9% for IGOV 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGOV charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, IGOV currently yields 1.43% against 0.44% for QQQ.
Holdings Overlap
IGOV and QQQ share 0 holdings out of 138 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, IGOV or QQQ?
IGOV has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, IGOV or QQQ?
Over the past year IGOV returned +0.49% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (18 years), IGOV annualized +0.11% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IGOV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.8% for IGOV. Worst drawdown: IGOV -35.9% vs QQQ -83.0%.
Should I hold both IGOV and QQQ?
IGOV and QQQ have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGOV and QQQ?
IGOV and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 138 unique securities.
Which pays a higher dividend, IGOV or QQQ?
IGOV yields 1.43% while QQQ yields 0.44%, so IGOV currently pays the higher dividend yield.
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