IIGD vs QQQ
Invesco Investment Grade Defensive ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IIGD has a lower expense ratio. QQQ delivered stronger 1-year returns. IIGD offers more diversification with 163 holdings.
Side-by-Side Comparison
| Metric | IIGD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.13% | 0.18% | |
| AUM | $27M | $496.3B | |
| Dividend Yield | 4.26% | 0.44% | |
| Holdings | 163 | 108 | |
| YTD Return | +0.56% | +16.23% | |
| 1Y Return | +2.58% | +26.23% | |
| 3Y Return (annualized) | +5.45% | +25.75% | |
| 5Y Return (annualized) | +1.66% | +14.78% | |
| Volatility (annualized) | 3.7% | 30.6% | |
| Max Drawdown | -13.1% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 25, 2018 | Mar 10, 1999 |
IIGD vs QQQ Performance
Invesco Investment Grade Defensive ETF (IIGD) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IIGD returned +2.58% while QQQ returned +26.23%. Year to date, IIGD is up 0.56% versus a gain of 16.23% for QQQ.
Over three years, IIGD compounded at +5.45% per year against +25.75% for QQQ; over five years the annualized figures are +1.66% and +14.78% respectively. Across the full 8-year window we track, QQQ has the edge at +13.02% annualized vs +1.90%. 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 3.7% for IIGD. 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 -13.1% for IIGD 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IIGD charges 0.13% per year while QQQ charges 0.18%. On a $10,000 position that is $13 vs $18 annually, a gap of $5 per year that compounds over a long holding period. On income, IIGD currently yields 4.26% against 0.44% for QQQ.
Holdings Overlap
IIGD and QQQ share 0 holdings out of 246 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, IIGD or QQQ?
IIGD has an expense ratio of 0.13% while QQQ charges 0.18%. IIGD is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, IIGD or QQQ?
Over the past year IIGD returned +2.58% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), IIGD annualized +1.90% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, IIGD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.7% for IIGD. Worst drawdown: IIGD -13.1% vs QQQ -83.0%.
Should I hold both IIGD and QQQ?
IIGD and QQQ have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IIGD and QQQ?
IIGD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 246 unique securities.
Which pays a higher dividend, IIGD or QQQ?
IIGD yields 4.26% while QQQ yields 0.44%, so IIGD currently pays the higher dividend yield.
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