IGPT vs QQQ
Invesco AI and Next Gen Software ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. IGPT delivered stronger 1-year returns. IGPT offers more diversification with 114 holdings.
Side-by-Side Comparison
| Metric | IGPT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.18% | |
| AUM | $1.2B | $455.8B | |
| Dividend Yield | 0.01% | 0.41% | |
| Holdings | 114 | 108 | |
| YTD Return | +56.14% | +19.68% | |
| 1Y Return | +85.15% | +26.75% | |
| 3Y Return (annualized) | +42.19% | +26.25% | |
| 5Y Return (annualized) | +14.79% | +15.39% | |
| Volatility (annualized) | 21.8% | 30.6% | |
| Max Drawdown | -50.1% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 23, 2005 | Mar 10, 1999 |
IGPT vs QQQ Performance
Invesco AI and Next Gen Software ETF (IGPT) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IGPT returned +85.15% while QQQ returned +26.75%. Year to date, IGPT is up 56.14% versus a gain of 19.68% for QQQ.
Over three years, IGPT compounded at +42.19% per year against +26.25% for QQQ; over five years the annualized figures are +14.79% and +15.39% respectively. Across the full 21-year window we track, IGPT has the edge at +15.33% annualized vs +13.15%. 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 21.8% for IGPT. 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 -50.1% for IGPT 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IGPT charges 0.56% per year while QQQ charges 0.18%. On a $10,000 position that is $56 vs $18 annually, a gap of $38 per year that compounds over a long holding period. On income, IGPT currently yields 0.01% against 0.41% for QQQ.
Holdings Overlap
IGPT and QQQ share 22 holdings out of 183 unique holdings combined, representing a 28.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IGPT or QQQ?
IGPT has an expense ratio of 0.56% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $38 per year of difference.
Which performed better, IGPT or QQQ?
Over the past year IGPT returned +85.15% vs +26.75% for QQQ, so IGPT leads on 1-year performance. Over the longest common window we track (21 years), IGPT annualized +15.33% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, IGPT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.8% for IGPT. Worst drawdown: IGPT -50.1% vs QQQ -83.0%.
Should I hold both IGPT and QQQ?
IGPT and QQQ have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGPT and QQQ?
IGPT and QQQ share 22 common holdings with a 28.9% weight overlap. Combined, they hold 183 unique securities.
Which pays a higher dividend, IGPT or QQQ?
IGPT yields 0.01% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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