IGV vs QQQ
iShares Expanded Tech-Software Sector ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IGV offers more diversification with 113 holdings.
Side-by-Side Comparison
| Metric | IGV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.18% | |
| AUM | $12.6B | $455.8B | |
| Dividend Yield | 0.02% | 0.41% | |
| Holdings | 113 | 108 | |
| YTD Return | +3.57% | +19.68% | |
| 1Y Return | -2.98% | +26.75% | |
| 3Y Return (annualized) | +15.45% | +26.25% | |
| 5Y Return (annualized) | +5.39% | +15.39% | |
| Volatility (annualized) | 23.8% | 30.6% | |
| Max Drawdown | -63.5% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 10, 2001 | Mar 10, 1999 |
IGV vs QQQ Performance
iShares Expanded Tech-Software Sector ETF (IGV) 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 IGV returned -2.98% while QQQ returned +26.75%. Year to date, IGV is up 3.57% versus a gain of 19.68% for QQQ.
Over three years, IGV compounded at +15.45% per year against +26.25% for QQQ; over five years the annualized figures are +5.39% and +15.39% respectively. Across the full 25-year window we track, QQQ has the edge at +13.15% annualized vs +9.83%. 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 23.8% for IGV. 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 -63.5% for IGV 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IGV 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, IGV currently yields 0.02% against 0.41% for QQQ.
Holdings Overlap
IGV and QQQ share 17 holdings out of 195 unique holdings combined, representing a 12.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IGV or QQQ?
IGV 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, IGV or QQQ?
Over the past year IGV returned -2.98% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (25 years), IGV annualized +9.83% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, IGV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 23.8% for IGV. Worst drawdown: IGV -63.5% vs QQQ -83.0%.
Should I hold both IGV and QQQ?
IGV and QQQ have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGV and QQQ?
IGV and QQQ share 17 common holdings with a 12.2% weight overlap. Combined, they hold 195 unique securities.
Which pays a higher dividend, IGV or QQQ?
IGV yields 0.02% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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