IHE vs QQQ
iShares US Pharmaceutical ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. IHE delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IHE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.18% | |
| AUM | $1.6B | $496.3B | |
| Dividend Yield | 1.43% | 0.44% | |
| Holdings | 60 | 108 | |
| YTD Return | +25.35% | +16.23% | |
| 1Y Return | +52.61% | +26.23% | |
| 3Y Return (annualized) | +20.18% | +25.75% | |
| 5Y Return (annualized) | +11.73% | +14.78% | |
| Volatility (annualized) | 15.6% | 30.6% | |
| Max Drawdown | -39.6% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Mar 10, 1999 |
IHE vs QQQ Performance
iShares US Pharmaceutical ETF (IHE) 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 IHE returned +52.61% while QQQ returned +26.23%. Year to date, IHE is up 25.35% versus a gain of 16.23% for QQQ.
Over three years, IHE compounded at +20.18% per year against +25.75% for QQQ; over five years the annualized figures are +11.73% and +14.78% respectively. Across the full 20-year window we track, QQQ has the edge at +13.02% annualized vs +9.95%. 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 15.6% for IHE. 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 -39.6% for IHE 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IHE charges 0.37% per year while QQQ charges 0.18%. On a $10,000 position that is $37 vs $18 annually, a gap of $19 per year that compounds over a long holding period. On income, IHE currently yields 1.43% against 0.44% for QQQ.
Holdings Overlap
IHE and QQQ share 0 holdings out of 159 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, IHE or QQQ?
IHE has an expense ratio of 0.37% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, IHE or QQQ?
Over the past year IHE returned +52.61% vs +26.23% for QQQ, so IHE leads on 1-year performance. Over the longest common window we track (20 years), IHE annualized +9.95% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, IHE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.6% for IHE. Worst drawdown: IHE -39.6% vs QQQ -83.0%.
Should I hold both IHE and QQQ?
IHE and QQQ have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IHE and QQQ?
IHE and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 159 unique securities.
Which pays a higher dividend, IHE or QQQ?
IHE yields 1.43% while QQQ yields 0.44%, so IHE currently pays the higher dividend yield.
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