ISMF vs QQQ
iShares Managed Futures Active ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. ISMF offers more diversification with 127 holdings.
Side-by-Side Comparison
| Metric | ISMF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.18% | |
| AUM | $61M | $496.3B | |
| Dividend Yield | 2.58% | 0.44% | |
| Holdings | 127 | 108 | |
| YTD Return | +6.75% | +16.64% | |
| 1Y Return | +18.45% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 6.2% | 30.6% | |
| Max Drawdown | -4.2% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Mar 12, 2025 | Mar 10, 1999 |
ISMF vs QQQ Performance
iShares Managed Futures Active ETF (ISMF) 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 ISMF returned +18.45% while QQQ returned +27.27%. Year to date, ISMF is up 6.75% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 6.2% for ISMF. 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 -4.2% for ISMF 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 0.20. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ISMF charges 0.80% per year while QQQ charges 0.18%. On a $10,000 position that is $80 vs $18 annually, a gap of $62 per year that compounds over a long holding period. On income, ISMF currently yields 2.58% against 0.44% for QQQ.
Holdings Overlap
ISMF and QQQ share 0 holdings out of 103 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, ISMF or QQQ?
ISMF has an expense ratio of 0.80% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, ISMF or QQQ?
Over the past year ISMF returned +18.45% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), ISMF annualized +13.66% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, ISMF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.2% for ISMF. Worst drawdown: ISMF -4.2% vs QQQ -83.0%.
Should I hold both ISMF and QQQ?
ISMF and QQQ have a monthly-return correlation of 0.20, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ISMF and QQQ?
ISMF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, ISMF or QQQ?
ISMF yields 2.58% while QQQ yields 0.44%, so ISMF currently pays the higher dividend yield.
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