ITB vs QQQ
iShares US Home Construction ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | ITB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $2.3B | $455.8B | |
| Dividend Yield | 0.61% | 0.41% | |
| Holdings | 48 | 108 | |
| YTD Return | +1.12% | +17.85% | |
| 1Y Return | -4.19% | +26.45% | |
| 3Y Return (annualized) | +5.15% | +26.07% | |
| 5Y Return (annualized) | +7.37% | +15.16% | |
| Volatility (annualized) | 31.1% | 30.6% | |
| Max Drawdown | -87.1% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Mar 10, 1999 |
ITB vs QQQ Performance
iShares US Home Construction ETF (ITB) 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 ITB returned -4.19% while QQQ returned +26.45%. Year to date, ITB is up 1.12% versus a gain of 17.85% for QQQ.
Over three years, ITB compounded at +5.15% per year against +26.07% for QQQ; over five years the annualized figures are +7.37% and +15.16% respectively. Across the full 20-year window we track, QQQ has the edge at +13.09% annualized vs +3.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ITB has been the more volatile fund, with annualized monthly volatility of 31.1% compared with 30.6% for QQQ. 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 -87.1% for ITB 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ITB charges 0.38% per year while QQQ charges 0.18%. On a $10,000 position that is $38 vs $18 annually, a gap of $20 per year that compounds over a long holding period. On income, ITB currently yields 0.61% against 0.41% for QQQ.
Holdings Overlap
ITB and QQQ share 0 holdings out of 148 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, ITB or QQQ?
ITB has an expense ratio of 0.38% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, ITB or QQQ?
Over the past year ITB returned -4.19% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), ITB annualized +3.62% vs +13.09% for QQQ. Past performance does not guarantee future results.
Which is riskier, ITB or QQQ?
ITB has been the more volatile fund at 31.1% annualized versus 30.6% for QQQ. Worst drawdown: ITB -87.1% vs QQQ -83.0%.
Should I hold both ITB and QQQ?
ITB and QQQ have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ITB and QQQ?
ITB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 148 unique securities.
Which pays a higher dividend, ITB or QQQ?
ITB yields 0.61% while QQQ yields 0.41%, so ITB currently pays the higher dividend yield.
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