ILIT vs QQQ

ILIT vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. ILIT delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: ILITMore Diversified: QQQ

Side-by-Side Comparison

MetricILITQQQWinner
Expense Ratio0.47%0.18%
AUM$15M$496.3B
Dividend Yield2.35%0.44%
Holdings43108
YTD Return-3.17%+19.52%
1Y Return+57.63%+26.68%
3Y Return (annualized)-4.53%+26.64%
5Y Return (annualized)-+15.36%
Volatility (annualized)44.1%30.6%
Max Drawdown-72.1%-83.0%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryEquityEquity
InceptionJun 21, 2023Mar 10, 1999

ILIT vs QQQ Performance

iShares Lithium Miners and Producers ETF (ILIT) 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 ILIT returned +57.63% while QQQ returned +26.68%. Year to date, ILIT is down 3.17% versus a gain of 19.52% for QQQ.

Over three years, ILIT compounded at -4.53% per year against +26.64% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.14% annualized vs -8.61%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

ILIT has been the more volatile fund, with annualized monthly volatility of 44.1% 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 -72.1% for ILIT 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

ILIT charges 0.47% per year while QQQ charges 0.18%. On a $10,000 position that is $47 vs $18 annually, a gap of $29 per year that compounds over a long holding period. On income, ILIT currently yields 2.35% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

ILIT and QQQ share 0 holdings out of 137 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, ILIT or QQQ?

ILIT has an expense ratio of 0.47% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $29 per year of difference.

Which performed better, ILIT or QQQ?

Over the past year ILIT returned +57.63% vs +26.68% for QQQ, so ILIT leads on 1-year performance. Over the longest common window we track (3 years), ILIT annualized -8.61% vs +13.14% for QQQ. Past performance does not guarantee future results.

Which is riskier, ILIT or QQQ?

ILIT has been the more volatile fund at 44.1% annualized versus 30.6% for QQQ. Worst drawdown: ILIT -72.1% vs QQQ -83.0%.

Should I hold both ILIT and QQQ?

ILIT and QQQ have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ILIT and QQQ?

ILIT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 137 unique securities.

Which pays a higher dividend, ILIT or QQQ?

ILIT yields 2.35% while QQQ yields 0.44%, so ILIT currently pays the higher dividend yield.

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