IIM vs QQQ
Invesco Value Municipal Income Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IIM offers more diversification with 499 holdings.
Side-by-Side Comparison
| Metric | IIM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.70% | 0.18% | |
| AUM | $3,691.17 | $496.3B | |
| Dividend Yield | 7.66% | 0.44% | |
| Holdings | 499 | 108 | |
| YTD Return | +5.22% | +16.64% | |
| 1Y Return | +15.22% | +27.27% | |
| 3Y Return (annualized) | +9.90% | +25.96% | |
| 5Y Return (annualized) | -0.26% | +14.54% | |
| Volatility (annualized) | 12.1% | 30.6% | |
| Max Drawdown | -46.5% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 26, 1993 | Mar 10, 1999 |
IIM vs QQQ Performance
Invesco Value Municipal Income Trust (IIM) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IIM returned +15.22% while QQQ returned +27.27%. Year to date, IIM is up 5.22% versus a gain of 16.64% for QQQ.
Over three years, IIM compounded at +9.90% per year against +25.96% for QQQ; over five years the annualized figures are -0.26% and +14.54% respectively. Across the full 27-year window we track, QQQ has the edge at +13.03% annualized vs +1.34%. 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 12.1% for IIM. 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 -46.5% for IIM 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 0.12. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IIM charges 1.70% per year while QQQ charges 0.18%. On a $10,000 position that is $170 vs $18 annually, a gap of $152 per year that compounds over a long holding period. On income, IIM currently yields 7.66% against 0.44% for QQQ.
Holdings Overlap
IIM and QQQ share 0 holdings out of 347 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, IIM or QQQ?
IIM has an expense ratio of 1.70% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $152 per year of difference.
Which performed better, IIM or QQQ?
Over the past year IIM returned +15.22% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), IIM annualized +1.34% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IIM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.1% for IIM. Worst drawdown: IIM -46.5% vs QQQ -83.0%.
Should I hold both IIM and QQQ?
IIM and QQQ have a monthly-return correlation of 0.12, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IIM and QQQ?
IIM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 347 unique securities.
Which pays a higher dividend, IIM or QQQ?
IIM yields 7.66% while QQQ yields 0.44%, so IIM currently pays the higher dividend yield.
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