IUS vs QQQ

IUS vs QQQ

Which is better, IUS or QQQ?

Large Cap Value against Large Cap Growth.

QQQ has a lower expense ratio. IUS led over 1Y and 5Y, QQQ over 3Y and the full window. IUS is less concentrated, with 26.5% of the fund in its ten largest positions against 46.5%.

Lower Fees: QQQHigher Returns: splitLess Concentrated: IUS

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricIUSQQQ
Expense Ratio0.19%0.18%Best
AUM$981M$483.5B
Dividend Yield1.21%0.44%
Holdings541107
YTD Return+21.74%Best+16.87%
1Y Return+28.22%Best+22.98%
3Y Return (annualized)+21.49%+24.98%Best
5Y Return (annualized)+15.01%Best+14.39%
Volatility (annualized)16.6%Best20.7%
Max Drawdown-35.2%-35.1%Best
$10,000 over 5 years$20,122Best$19,586
Top 10 Weight26.5%Best46.5%
Fund FamilyInvesco (US)Invesco (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Growth
InceptionSep 12, 2018Mar 10, 1999

Volatility and max drawdown are measured over the window both funds cover: Sep 12, 2018 to Sep 11, 2026 (8 years).

IUS vs QQQ growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 8 years both funds cover.

IUS vs QQQ Performance

Invesco RAFI Strategic US ETF (IUS) is an ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year IUS returned +28.22% while QQQ returned +22.98%. Year to date, IUS is up 21.74% versus a gain of 16.87% for QQQ.

Over three years, IUS compounded at +21.49% per year against +24.98% for QQQ; over five years the annualized figures are +15.01% and +14.39% respectively. Across the full 8-year window we track, QQQ has the edge at +19.09% annualized vs +15.05%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 20.7% compared with 16.6% for IUS. 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 -35.2% for IUS and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.80. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IUS charges 0.19% per year while QQQ charges 0.18%. On a $10,000 position that is $19 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, IUS currently yields 1.21% against 0.44% for QQQ.

Holdings Overlap

IUS already in QQQ32.9%
QQQ already in IUS83.6%

32.9% of IUS's money is in holdings QQQ also owns. 83.6% of QQQ's money is in holdings IUS also owns.

Most of QQQ is already inside IUS. Owning both mostly buys the same companies twice.

72 positions in common, counted across the 498 positions we hold weights for in IUS and 102 in QQQ, against full books of 541 and 107.

What only one of them owns

Our book lists 23 positions for QQQ that do not appear in our book for IUS (13.4% of the fund), and 412 for IUS that do not appear in QQQ (64.1%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in IUSWeight in QQQDifference
AAPLApple, Inc3.90%7.27%3.37%
NVDANvidia Corp.2.03%8.44%6.41%
MSFTMicrosoft Corp 4.100 Feb 06 373.88%5.76%1.88%
AMZNAmazon.Com Inc2.88%4.67%1.79%
GOOGLAlphabet A Usd 0.0013.85%3.36%0.49%
METAMeta Platforms, Inc.2.44%2.78%0.34%
MUMicron Technology, Inc.0.47%4.43%3.96%
AVGOBroadcom Inc0.83%3.16%2.33%
WMTWalmart, Inc.0.86%2.41%1.55%
TSLATesla Inc0.28%2.56%2.28%

83.6% of QQQ is already inside IUS.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

IUSQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IUS or QQQ?

IUS has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option, by $1 a year on a $10,000 investment.

Which performed better, IUS or QQQ?

Over the past year IUS returned +28.22% vs +22.98% for QQQ, so IUS leads on 1-year performance. Over the longest common window we track (8 years), IUS annualized +15.05% vs +19.09% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IUS or QQQ?

QQQ has been the more volatile fund at 20.7% annualized versus 16.6% for IUS. Worst drawdown: IUS -35.2% vs QQQ -35.1%.

Should I hold both IUS and QQQ?

IUS and QQQ have a monthly-return correlation of 0.80, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between IUS and QQQ?

83.6% of QQQ's money is in holdings IUS also owns. 83.6% of QQQ's is in holdings IUS also owns. They hold 72 positions in common, counted across the 498 positions we hold weights for in IUS and 102 in QQQ.

Which pays a higher dividend, IUS or QQQ?

IUS yields 1.21% while QQQ yields 0.44%, so IUS currently pays the higher dividend yield.

Is QQQ better than IUS?

QQQ has a lower expense ratio. IUS led over 1Y and 5Y, QQQ over 3Y and the full window. IUS is less concentrated, with 26.5% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.