ITWO vs QQQ
ProShares Russell 2000 High Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. ITWO delivered stronger 1-year returns. ITWO offers more diversification with 1,981 holdings.
Side-by-Side Comparison
| Metric | ITWO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.18% | |
| AUM | $202M | $496.3B | |
| Dividend Yield | 7.36% | 0.44% | |
| Holdings | 1,981 | 108 | |
| YTD Return | +14.74% | +16.23% | |
| 1Y Return | +26.40% | +26.23% | |
| 3Y Return (annualized) | - | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 15.7% | 30.6% | |
| Max Drawdown | -24.8% | -83.0% | |
| Fund Family | ProShares | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 4, 2024 | Mar 10, 1999 |
ITWO vs QQQ Performance
ProShares Russell 2000 High Income ETF (ITWO) is a ETF from ProShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ITWO returned +26.40% while QQQ returned +26.23%. Year to date, ITWO is up 14.74% 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 15.7% for ITWO. 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 -24.8% for ITWO 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ITWO charges 0.55% per year while QQQ charges 0.18%. On a $10,000 position that is $55 vs $18 annually, a gap of $37 per year that compounds over a long holding period. On income, ITWO currently yields 7.36% against 0.44% for QQQ.
Holdings Overlap
ITWO and QQQ share 1 holdings out of 2067 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in ITWO | Weight in QQQ | Difference |
|---|---|---|---|
| XEL | 0.03% | 0.21% | 0.18% |
Frequently Asked Questions
Which is cheaper, ITWO or QQQ?
ITWO has an expense ratio of 0.55% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, ITWO or QQQ?
Over the past year ITWO returned +26.40% vs +26.23% for QQQ, so ITWO leads on 1-year performance. Over the longest common window we track (2 years), ITWO annualized +17.25% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, ITWO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.7% for ITWO. Worst drawdown: ITWO -24.8% vs QQQ -83.0%.
Should I hold both ITWO and QQQ?
ITWO and QQQ have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ITWO and QQQ?
ITWO and QQQ share 1 common holdings with a 0.0% weight overlap. Combined, they hold 2067 unique securities.
Which pays a higher dividend, ITWO or QQQ?
ITWO yields 7.36% while QQQ yields 0.44%, so ITWO currently pays the higher dividend yield.
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