ILS vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. ILS offers more diversification with 128 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: ILS

Side-by-Side Comparison

MetricILSQQQWinner
Expense Ratio1.58%0.18%
AUM$85M$496.3B
Dividend Yield8.15%0.44%
Holdings128108
YTD Return+4.04%+19.52%
1Y Return+7.89%+26.68%
3Y Return (annualized)-+26.64%
5Y Return (annualized)-+15.36%
Volatility (annualized)2.6%30.6%
Max Drawdown-1.6%-83.0%
Fund FamilyILS ETFsInvesco (US)
CategoryFixed IncomeEquity
InceptionMar 14, 2025Mar 10, 1999

ILS vs QQQ Performance

Brookmont Catastrophic Bond ETF (ILS) is a ETF from ILS ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ILS returned +7.89% while QQQ returned +26.68%. Year to date, ILS is up 4.04% versus a gain of 19.52% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 2.6% for ILS. 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 -1.6% for ILS 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 -0.04. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

ILS charges 1.58% per year while QQQ charges 0.18%. On a $10,000 position that is $158 vs $18 annually, a gap of $140 per year that compounds over a long holding period. On income, ILS currently yields 8.15% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

ILS and QQQ share 0 holdings out of 103 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, ILS or QQQ?

ILS has an expense ratio of 1.58% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $140 per year of difference.

Which performed better, ILS or QQQ?

Over the past year ILS returned +7.89% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), ILS annualized +7.16% vs +13.14% for QQQ. Past performance does not guarantee future results.

Which is riskier, ILS or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 2.6% for ILS. Worst drawdown: ILS -1.6% vs QQQ -83.0%.

Should I hold both ILS and QQQ?

ILS and QQQ have a monthly-return correlation of -0.04, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ILS and QQQ?

ILS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.

Which pays a higher dividend, ILS or QQQ?

ILS yields 8.15% while QQQ yields 0.44%, so ILS currently pays the higher dividend yield.

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