IMCB vs QQQ
iShares Morningstar Mid-Cap ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IMCB has a lower expense ratio. IMCB delivered stronger 1-year returns. IMCB offers more diversification with 396 holdings.
Side-by-Side Comparison
| Metric | IMCB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.18% | |
| AUM | $1.7B | $455.8B | |
| Dividend Yield | 1.22% | 0.41% | |
| Holdings | 399 | 108 | |
| YTD Return | +20.43% | +17.46% | |
| 1Y Return | +26.89% | +26.02% | |
| 3Y Return (annualized) | +18.15% | +25.51% | |
| 5Y Return (annualized) | +9.46% | +15.12% | |
| Volatility (annualized) | 17.2% | 30.6% | |
| Max Drawdown | -59.6% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 28, 2004 | Mar 10, 1999 |
IMCB vs QQQ Performance
iShares Morningstar Mid-Cap ETF (IMCB) 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 IMCB returned +26.89% while QQQ returned +26.02%. Year to date, IMCB is up 20.43% versus a gain of 17.46% for QQQ.
Over three years, IMCB compounded at +18.15% per year against +25.51% for QQQ; over five years the annualized figures are +9.46% and +15.12% respectively. Across the full 22-year window we track, QQQ has the edge at +13.08% annualized vs +9.38%. 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 17.2% for IMCB. 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 -59.6% for IMCB 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IMCB charges 0.04% per year while QQQ charges 0.18%. On a $10,000 position that is $4 vs $18 annually, a gap of $14 per year that compounds over a long holding period. On income, IMCB currently yields 1.22% against 0.41% for QQQ.
Holdings Overlap
IMCB and QQQ share 45 holdings out of 454 unique holdings combined, representing a 11.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IMCB or QQQ?
IMCB has an expense ratio of 0.04% while QQQ charges 0.18%. IMCB is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, IMCB or QQQ?
Over the past year IMCB returned +26.89% vs +26.02% for QQQ, so IMCB leads on 1-year performance. Over the longest common window we track (22 years), IMCB annualized +9.38% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, IMCB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.2% for IMCB. Worst drawdown: IMCB -59.6% vs QQQ -83.0%.
Should I hold both IMCB and QQQ?
IMCB and QQQ have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IMCB and QQQ?
IMCB and QQQ share 45 common holdings with a 11.2% weight overlap. Combined, they hold 454 unique securities.
Which pays a higher dividend, IMCB or QQQ?
IMCB yields 1.22% while QQQ yields 0.41%, so IMCB currently pays the higher dividend yield.
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