IOCT vs QQQ
Innovator International Developed Power Buffer ETF - October vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IOCT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.18% | |
| AUM | $166M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 6 | 108 | |
| YTD Return | +8.59% | +19.68% | |
| 1Y Return | +13.59% | +26.75% | |
| 3Y Return (annualized) | +13.16% | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 8.8% | 30.6% | |
| Max Drawdown | -16.9% | -83.0% | |
| Fund Family | Innovator ETFs Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Oct 1, 2021 | Mar 10, 1999 |
IOCT vs QQQ Performance
Innovator International Developed Power Buffer ETF - October (IOCT) is a ETF from Innovator ETFs Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IOCT returned +13.59% while QQQ returned +26.75%. Year to date, IOCT is up 8.59% versus a gain of 19.68% for QQQ.
Over three years, IOCT compounded at +13.16% per year against +26.25% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.15% annualized vs +8.90%. 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 8.8% for IOCT. 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 -16.9% for IOCT 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IOCT charges 0.85% per year while QQQ charges 0.18%. On a $10,000 position that is $85 vs $18 annually, a gap of $67 per year that compounds over a long holding period. On income, IOCT currently yields 0.00% against 0.41% for QQQ.
Frequently Asked Questions
Which is cheaper, IOCT or QQQ?
IOCT has an expense ratio of 0.85% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, IOCT or QQQ?
Over the past year IOCT returned +13.59% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), IOCT annualized +8.90% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, IOCT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.8% for IOCT. Worst drawdown: IOCT -16.9% vs QQQ -83.0%.
Should I hold both IOCT and QQQ?
IOCT and QQQ have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, IOCT or QQQ?
IOCT yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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