IQI vs QQQ
Invesco Quality Municipal Income Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IQI offers more diversification with 485 holdings.
Side-by-Side Comparison
| Metric | IQI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.71% | 0.18% | |
| AUM | $3,048.42 | $496.3B | |
| Dividend Yield | 7.66% | 0.44% | |
| Holdings | 485 | 108 | |
| YTD Return | +5.33% | +16.64% | |
| 1Y Return | +15.70% | +27.27% | |
| 3Y Return (annualized) | +10.51% | +25.96% | |
| 5Y Return (annualized) | -0.20% | +14.54% | |
| Volatility (annualized) | 11.6% | 30.6% | |
| Max Drawdown | -57.6% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 29, 1992 | Mar 10, 1999 |
IQI vs QQQ Performance
Invesco Quality Municipal Income Trust (IQI) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IQI returned +15.70% while QQQ returned +27.27%. Year to date, IQI is up 5.33% versus a gain of 16.64% for QQQ.
Over three years, IQI compounded at +10.51% per year against +25.96% for QQQ; over five years the annualized figures are -0.20% and +14.54% respectively. Across the full 27-year window we track, QQQ has the edge at +13.03% annualized vs -0.02%. 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 11.6% for IQI. 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 -57.6% for IQI 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 0.16. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IQI charges 1.71% per year while QQQ charges 0.18%. On a $10,000 position that is $171 vs $18 annually, a gap of $153 per year that compounds over a long holding period. On income, IQI currently yields 7.66% against 0.44% for QQQ.
Holdings Overlap
IQI and QQQ share 0 holdings out of 347 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, IQI or QQQ?
IQI has an expense ratio of 1.71% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $153 per year of difference.
Which performed better, IQI or QQQ?
Over the past year IQI returned +15.70% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), IQI annualized -0.02% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IQI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.6% for IQI. Worst drawdown: IQI -57.6% vs QQQ -83.0%.
Should I hold both IQI and QQQ?
IQI and QQQ have a monthly-return correlation of 0.16, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IQI and QQQ?
IQI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 347 unique securities.
Which pays a higher dividend, IQI or QQQ?
IQI yields 7.66% while QQQ yields 0.44%, so IQI currently pays the higher dividend yield.
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