IIF vs QQQ
Morgan Stanley India Investment Fund Inc. 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 | IIF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.28% | 0.18% | |
| AUM | $318M | $496.3B | |
| Dividend Yield | 7.69% | 0.44% | |
| Holdings | 46 | 108 | |
| YTD Return | -7.79% | +16.64% | |
| 1Y Return | -8.77% | +27.27% | |
| 3Y Return (annualized) | +12.94% | +25.96% | |
| 5Y Return (annualized) | +8.47% | +14.54% | |
| Volatility (annualized) | 31.0% | 30.6% | |
| Max Drawdown | -62.1% | -83.0% | |
| Fund Family | Morgan Stanley Investment Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 25, 1994 | Mar 10, 1999 |
IIF vs QQQ Performance
Morgan Stanley India Investment Fund Inc. (IIF) is a ETF from Morgan Stanley Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IIF returned -8.77% while QQQ returned +27.27%. Year to date, IIF is down 7.79% versus a gain of 16.64% for QQQ.
Over three years, IIF compounded at +12.94% per year against +25.96% for QQQ; over five years the annualized figures are +8.47% and +14.54% respectively. Across the full 25-year window we track, IIF has the edge at +17.68% annualized vs +13.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IIF has been the more volatile fund, with annualized monthly volatility of 31.0% compared with 30.6% for QQQ. 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 -62.1% for IIF 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IIF charges 1.28% per year while QQQ charges 0.18%. On a $10,000 position that is $128 vs $18 annually, a gap of $110 per year that compounds over a long holding period. On income, IIF currently yields 7.69% against 0.44% for QQQ.
Holdings Overlap
IIF and QQQ share 0 holdings out of 148 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, IIF or QQQ?
IIF has an expense ratio of 1.28% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $110 per year of difference.
Which performed better, IIF or QQQ?
Over the past year IIF returned -8.77% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (25 years), IIF annualized +17.68% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IIF or QQQ?
IIF has been the more volatile fund at 31.0% annualized versus 30.6% for QQQ. Worst drawdown: IIF -62.1% vs QQQ -83.0%.
Should I hold both IIF and QQQ?
IIF and QQQ have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IIF and QQQ?
IIF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 148 unique securities.
Which pays a higher dividend, IIF or QQQ?
IIF yields 7.69% while QQQ yields 0.44%, so IIF currently pays the higher dividend yield.
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