ISCG vs QQQ
iShares Morningstar Small-Cap Growth ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
ISCG has a lower expense ratio. QQQ delivered stronger 1-year returns. ISCG offers more diversification with 939 holdings.
Side-by-Side Comparison
| Metric | ISCG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.18% | |
| AUM | $975M | $455.8B | |
| Dividend Yield | 0.57% | 0.41% | |
| Holdings | 939 | 108 | |
| YTD Return | +18.07% | +19.68% | |
| 1Y Return | +26.25% | +26.75% | |
| 3Y Return (annualized) | +17.68% | +26.25% | |
| 5Y Return (annualized) | +6.55% | +15.39% | |
| Volatility (annualized) | 19.6% | 30.6% | |
| Max Drawdown | -58.0% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 28, 2004 | Mar 10, 1999 |
ISCG vs QQQ Performance
iShares Morningstar Small-Cap Growth ETF (ISCG) 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 ISCG returned +26.25% while QQQ returned +26.75%. Year to date, ISCG is up 18.07% versus a gain of 19.68% for QQQ.
Over three years, ISCG compounded at +17.68% per year against +26.25% for QQQ; over five years the annualized figures are +6.55% and +15.39% respectively. Across the full 22-year window we track, QQQ has the edge at +13.15% annualized vs +9.33%. 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 19.6% for ISCG. 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 -58.0% for ISCG 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
ISCG charges 0.06% per year while QQQ charges 0.18%. On a $10,000 position that is $6 vs $18 annually, a gap of $12 per year that compounds over a long holding period. On income, ISCG currently yields 0.57% against 0.41% for QQQ.
Holdings Overlap
ISCG and QQQ share 0 holdings out of 980 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, ISCG or QQQ?
ISCG has an expense ratio of 0.06% while QQQ charges 0.18%. ISCG is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, ISCG or QQQ?
Over the past year ISCG returned +26.25% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (22 years), ISCG annualized +9.33% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, ISCG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.6% for ISCG. Worst drawdown: ISCG -58.0% vs QQQ -83.0%.
Should I hold both ISCG and QQQ?
ISCG 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 ISCG and QQQ?
ISCG and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 980 unique securities.
Which pays a higher dividend, ISCG or QQQ?
ISCG yields 0.57% while QQQ yields 0.41%, so ISCG currently pays the higher dividend yield.
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