ITDI vs QQQ

ITDI vs QQQ
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Quick Verdict

ITDI has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: ITDIHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricITDIQQQWinner
Expense Ratio0.12%0.18%
AUM$29M$496.3B
Dividend Yield1.46%0.44%
Holdings8108
YTD Return+13.51%+16.23%
1Y Return+22.74%+26.23%
3Y Return (annualized)-+25.75%
5Y Return (annualized)-+14.78%
Volatility (annualized)11.5%30.6%
Max Drawdown-16.3%-83.0%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryAllocation/BalancedEquity
InceptionOct 17, 2023Mar 10, 1999

ITDI vs QQQ Performance

iShares LifePath Target Date 2065 ETF (ITDI) 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 ITDI returned +22.74% while QQQ returned +26.23%. Year to date, ITDI is up 13.51% versus a gain of 16.23% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 11.5% for ITDI. 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 -16.3% for ITDI 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 0.85. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

ITDI charges 0.12% per year while QQQ charges 0.18%. On a $10,000 position that is $12 vs $18 annually, a gap of $6 per year that compounds over a long holding period. On income, ITDI currently yields 1.46% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

ITDI and QQQ share 0 holdings out of 109 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, ITDI or QQQ?

ITDI has an expense ratio of 0.12% while QQQ charges 0.18%. ITDI is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, ITDI or QQQ?

Over the past year ITDI returned +22.74% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), ITDI annualized +23.82% vs +13.02% for QQQ. Past performance does not guarantee future results.

Which is riskier, ITDI or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 11.5% for ITDI. Worst drawdown: ITDI -16.3% vs QQQ -83.0%.

Should I hold both ITDI and QQQ?

ITDI and QQQ have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ITDI and QQQ?

ITDI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 109 unique securities.

Which pays a higher dividend, ITDI or QQQ?

ITDI yields 1.46% while QQQ yields 0.44%, so ITDI currently pays the higher dividend yield.

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