IHI vs QQQ
iShares US Medical Devices ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IHI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.18% | |
| AUM | $3.5B | $496.3B | |
| Dividend Yield | 0.46% | 0.44% | |
| Holdings | 51 | 108 | |
| YTD Return | -9.03% | +16.64% | |
| 1Y Return | -8.88% | +27.27% | |
| 3Y Return (annualized) | +3.33% | +25.96% | |
| 5Y Return (annualized) | -2.26% | +14.54% | |
| Volatility (annualized) | 17.4% | 30.6% | |
| Max Drawdown | -49.7% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Mar 10, 1999 |
IHI vs QQQ Performance
iShares US Medical Devices ETF (IHI) 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 IHI returned -8.88% while QQQ returned +27.27%. Year to date, IHI is down 9.03% versus a gain of 16.64% for QQQ.
Over three years, IHI compounded at +3.33% per year against +25.96% for QQQ; over five years the annualized figures are -2.26% and +14.54% respectively. Across the full 20-year window we track, QQQ has the edge at +13.03% annualized vs +10.02%. 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 17.4% for IHI. 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 -49.7% for IHI 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IHI 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, IHI currently yields 0.46% against 0.44% for QQQ.
Holdings Overlap
IHI and QQQ share 4 holdings out of 145 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IHI or QQQ?
IHI 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, IHI or QQQ?
Over the past year IHI returned -8.88% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), IHI annualized +10.02% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IHI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.4% for IHI. Worst drawdown: IHI -49.7% vs QQQ -83.0%.
Should I hold both IHI and QQQ?
IHI and QQQ have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IHI and QQQ?
IHI and QQQ share 4 common holdings with a 1.1% weight overlap. Combined, they hold 145 unique securities.
Which pays a higher dividend, IHI or QQQ?
IHI yields 0.46% while QQQ yields 0.44%, so IHI currently pays the higher dividend yield.
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