IROC vs QQQ
Invesco Rochester High Yield Municipal ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IROC offers more diversification with 137 holdings.
Side-by-Side Comparison
| Metric | IROC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.18% | |
| AUM | $154M | $496.3B | |
| Dividend Yield | 5.20% | 0.44% | |
| Holdings | 137 | 108 | |
| YTD Return | -0.45% | +16.23% | |
| 1Y Return | +3.42% | +26.23% | |
| 3Y Return (annualized) | +4.03% | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 4.6% | 30.6% | |
| Max Drawdown | -4.8% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 9, 2022 | Mar 10, 1999 |
IROC vs QQQ Performance
Invesco Rochester High Yield Municipal ETF (IROC) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IROC returned +3.42% while QQQ returned +26.23%. Year to date, IROC is down 0.45% versus a gain of 16.23% for QQQ.
Over three years, IROC compounded at +4.03% per year against +25.75% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.02% annualized vs +3.62%. 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 4.6% for IROC. 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 -4.8% for IROC 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IROC charges 0.39% per year while QQQ charges 0.18%. On a $10,000 position that is $39 vs $18 annually, a gap of $21 per year that compounds over a long holding period. On income, IROC currently yields 5.20% against 0.44% for QQQ.
Holdings Overlap
IROC and QQQ share 0 holdings out of 149 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, IROC or QQQ?
IROC has an expense ratio of 0.39% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, IROC or QQQ?
Over the past year IROC returned +3.42% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), IROC annualized +3.62% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, IROC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.6% for IROC. Worst drawdown: IROC -4.8% vs QQQ -83.0%.
Should I hold both IROC and QQQ?
IROC and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IROC and QQQ?
IROC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 149 unique securities.
Which pays a higher dividend, IROC or QQQ?
IROC yields 5.20% while QQQ yields 0.44%, so IROC currently pays the higher dividend yield.
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