ISCB vs QQQ
iShares Morningstar Small-Cap ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
ISCB has a lower expense ratio. ISCB delivered stronger 1-year returns. ISCB offers more diversification with 1305 holdings.
Side-by-Side Comparison
| Metric | ISCB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.18% | |
| AUM | $283M | $455.8B | |
| Dividend Yield | 1.26% | 0.41% | |
| Holdings | 1,587 | 108 | |
| YTD Return | +17.70% | +18.20% | |
| 1Y Return | +31.65% | +27.63% | |
| 3Y Return (annualized) | +16.22% | +25.54% | |
| 5Y Return (annualized) | +7.76% | +15.12% | |
| Volatility (annualized) | 19.7% | 30.6% | |
| Max Drawdown | -61.9% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 28, 2004 | Mar 10, 1999 |
ISCB vs QQQ Performance
iShares Morningstar Small-Cap ETF (ISCB) 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 ISCB returned +31.65% while QQQ returned +27.63%. Year to date, ISCB is up 17.70% versus a gain of 18.20% for QQQ.
Over three years, ISCB compounded at +16.22% per year against +25.54% for QQQ; over five years the annualized figures are +7.76% and +15.12% respectively. Across the full 22-year window we track, QQQ has the edge at +13.11% annualized vs +8.05%. 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 19.7% for ISCB. 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 -61.9% for ISCB 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ISCB 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, ISCB currently yields 1.26% against 0.41% for QQQ.
Holdings Overlap
ISCB and QQQ share 0 holdings out of 1408 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, ISCB or QQQ?
ISCB has an expense ratio of 0.04% while QQQ charges 0.18%. ISCB is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, ISCB or QQQ?
Over the past year ISCB returned +31.65% vs +27.63% for QQQ, so ISCB leads on 1-year performance. Over the longest common window we track (22 years), ISCB annualized +8.05% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, ISCB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.7% for ISCB. Worst drawdown: ISCB -61.9% vs QQQ -83.0%.
Should I hold both ISCB and QQQ?
ISCB and QQQ have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ISCB and QQQ?
ISCB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1408 unique securities.
Which pays a higher dividend, ISCB or QQQ?
ISCB yields 1.26% while QQQ yields 0.41%, so ISCB currently pays the higher dividend yield.
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