IJR vs QQQ
iShares Core S&P Small-Cap ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IJR has a lower expense ratio. IJR delivered stronger 1-year returns. IJR offers more diversification with 662 holdings.
Side-by-Side Comparison
| Metric | IJR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.18% | |
| AUM | $112.9B | $496.3B | |
| Dividend Yield | 1.13% | 0.44% | |
| Holdings | 662 | 108 | |
| YTD Return | +21.93% | +16.64% | |
| 1Y Return | +30.77% | +27.27% | |
| 3Y Return (annualized) | +16.37% | +25.96% | |
| 5Y Return (annualized) | +7.72% | +14.54% | |
| Volatility (annualized) | 19.4% | 30.6% | |
| Max Drawdown | -58.9% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 22, 2000 | Mar 10, 1999 |
IJR vs QQQ Performance
iShares Core S&P Small-Cap ETF (IJR) 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 IJR returned +30.77% while QQQ returned +27.27%. Year to date, IJR is up 21.93% versus a gain of 16.64% for QQQ.
Over three years, IJR compounded at +16.37% per year against +25.96% for QQQ; over five years the annualized figures are +7.72% and +14.54% respectively. Across the full 26-year window we track, QQQ has the edge at +13.03% annualized vs +9.19%. 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 19.4% for IJR. 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 -58.9% for IJR 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IJR charges 0.06% per year while QQQ charges 0.18%. On a $10,000 position that is $6 vs $18 annually, a gap of $12 per year that compounds over a long holding period. On income, IJR currently yields 1.13% against 0.44% for QQQ.
Holdings Overlap
IJR and QQQ share 0 holdings out of 693 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, IJR or QQQ?
IJR has an expense ratio of 0.06% while QQQ charges 0.18%. IJR is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, IJR or QQQ?
Over the past year IJR returned +30.77% vs +27.27% for QQQ, so IJR leads on 1-year performance. Over the longest common window we track (26 years), IJR annualized +9.19% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IJR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.4% for IJR. Worst drawdown: IJR -58.9% vs QQQ -83.0%.
Should I hold both IJR and QQQ?
IJR and QQQ have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IJR and QQQ?
IJR and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 693 unique securities.
Which pays a higher dividend, IJR or QQQ?
IJR yields 1.13% while QQQ yields 0.44%, so IJR currently pays the higher dividend yield.
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