IHF vs QQQ

Quick Verdict

QQQ has a lower expense ratio. IHF delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: IHFMore Diversified: QQQ

Side-by-Side Comparison

MetricIHFQQQWinner
Expense Ratio0.38%0.18%
AUM$1.2B$455.8B
Dividend Yield0.95%0.41%
Holdings64108
YTD Return+18.47%+18.31%
1Y Return+33.49%+25.37%
3Y Return (annualized)+4.04%+25.79%
5Y Return (annualized)+2.59%+15.20%
Volatility (annualized)19.5%30.6%
Max Drawdown-58.8%-83.0%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryEquityEquity
InceptionMay 1, 2006Mar 10, 1999

IHF vs QQQ Performance

iShares US Health Care Providers ETF (IHF) 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 IHF returned +33.49% while QQQ returned +25.37%. Year to date, IHF is up 18.47% versus a gain of 18.31% for QQQ.

Over three years, IHF compounded at +4.04% per year against +25.79% for QQQ; over five years the annualized figures are +2.59% and +15.20% respectively. Across the full 20-year window we track, QQQ has the edge at +13.10% annualized vs +9.33%. 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 19.5% for IHF. 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 -58.8% for IHF 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

IHF charges 0.38% per year while QQQ charges 0.18%. On a $10,000 position that is $38 vs $18 annually, a gap of $20 per year that compounds over a long holding period. On income, IHF currently yields 0.95% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

IHF and QQQ share 0 holdings out of 164 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, IHF or QQQ?

IHF has an expense ratio of 0.38% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $20 per year of difference.

Which performed better, IHF or QQQ?

Over the past year IHF returned +33.49% vs +25.37% for QQQ, so IHF leads on 1-year performance. Over the longest common window we track (20 years), IHF annualized +9.33% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, IHF or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 19.5% for IHF. Worst drawdown: IHF -58.8% vs QQQ -83.0%.

Should I hold both IHF and QQQ?

IHF 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 IHF and QQQ?

IHF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 164 unique securities.

Which pays a higher dividend, IHF or QQQ?

IHF yields 0.95% while QQQ yields 0.41%, so IHF currently pays the higher dividend yield.

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