IGSB vs QQQ
iShares 1-5 Year Investment Grade Corporate Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IGSB has a lower expense ratio. QQQ delivered stronger 1-year returns. IGSB offers more diversification with 3933 holdings.
Side-by-Side Comparison
| Metric | IGSB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.18% | |
| AUM | $22.9B | $455.8B | |
| Dividend Yield | 4.56% | 0.41% | |
| Holdings | 4,645 | 108 | |
| YTD Return | +0.72% | +17.46% | |
| 1Y Return | +3.00% | +26.02% | |
| 3Y Return (annualized) | +5.75% | +25.51% | |
| 5Y Return (annualized) | +2.50% | +15.12% | |
| Volatility (annualized) | 2.7% | 30.6% | |
| Max Drawdown | -13.4% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 5, 2007 | Mar 10, 1999 |
IGSB vs QQQ Performance
iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) 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 IGSB returned +3.00% while QQQ returned +26.02%. Year to date, IGSB is up 0.72% versus a gain of 17.46% for QQQ.
Over three years, IGSB compounded at +5.75% per year against +25.51% for QQQ; over five years the annualized figures are +2.50% and +15.12% respectively. Across the full 20-year window we track, QQQ has the edge at +13.08% annualized vs +1.13%. 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 2.7% for IGSB. 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 -13.4% for IGSB 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGSB 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, IGSB currently yields 4.56% against 0.41% for QQQ.
Holdings Overlap
IGSB and QQQ share 1 holdings out of 4035 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IGSB | Weight in QQQ | Difference |
|---|---|---|---|
| KDP | 0.03% | 0.19% | 0.16% |
Frequently Asked Questions
Which is cheaper, IGSB or QQQ?
IGSB has an expense ratio of 0.04% while QQQ charges 0.18%. IGSB is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, IGSB or QQQ?
Over the past year IGSB returned +3.00% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), IGSB annualized +1.13% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, IGSB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 2.7% for IGSB. Worst drawdown: IGSB -13.4% vs QQQ -83.0%.
Should I hold both IGSB and QQQ?
IGSB and QQQ have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGSB and QQQ?
IGSB and QQQ share 1 common holdings with a 0.0% weight overlap. Combined, they hold 4035 unique securities.
Which pays a higher dividend, IGSB or QQQ?
IGSB yields 4.56% while QQQ yields 0.41%, so IGSB currently pays the higher dividend yield.
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