IWB vs QQQ

IWB vs QQQ

Which is better, IWB or QQQ?

Large Cap Blend against Large Cap Growth.

IWB has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. IWB is less concentrated, with 34.8% of the fund in its ten largest positions against 46.5%.

Lower Fees: IWBHigher Returns: QQQLess Concentrated: IWB

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

MetricIWBQQQ
Expense Ratio0.15%Best0.18%
AUM$48.5B$483.5B
Dividend Yield0.93%0.44%
Holdings1,029107
YTD Return+11.90%+17.95%Best
1Y Return+15.63%+21.77%Best
3Y Return (annualized)+20.93%+25.63%Best
5Y Return (annualized)+12.62%+15.24%Best
Volatility (annualized)15.3%Best22.5%
Max Drawdown-56.4%Best-80.5%
$10,000 over 5 years$18,117$20,324Best
Top 10 Weight34.8%Best46.5%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Growth
InceptionMay 15, 2000Mar 10, 1999

Volatility and max drawdown are measured over the window both funds cover: May 19, 2000 to Sep 18, 2026 (26.3 years).

IWB 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 26.3 years both funds cover.

IWB vs QQQ Performance

iShares Russell 1000 ETF (IWB) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year IWB returned +15.63% while QQQ returned +21.77%. Year to date, IWB is up 11.90% versus a gain of 17.95% for QQQ.

Over three years, IWB compounded at +20.93% per year against +25.63% for QQQ; over five years the annualized figures are +12.62% and +15.24% respectively. Across the full 26-year window we track, QQQ has the edge at +8.76% annualized vs +7.05%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 22.5% compared with 15.3% for IWB. 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 -56.4% for IWB and -80.5% 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 0.88. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IWB charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, IWB currently yields 0.93% against 0.44% for QQQ.

Holdings Overlap

IWB already in QQQ49.8%
QQQ already in IWB94.8%

49.8% of IWB's money is in holdings QQQ also owns. 94.8% of QQQ's money is in holdings IWB also owns.

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

88 positions in common, counted across the 853 positions we hold weights for in IWB and 102 in QQQ, against full books of 1,029 and 107.

What only one of them owns

Our book lists 8 positions for QQQ that do not appear in our book for IWB (2.8% of the fund), and 690 for IWB that do not appear in QQQ (47.5%).

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 IWBWeight in QQQDifference
NVDANvidia Corp7.26%8.44%1.18%
AAPLApple, Inc6.45%7.27%0.82%
MSFTMicrosoft Corp5.31%5.76%0.45%
AMZNAmazon.Com Inc3.55%4.67%1.12%
GOOGLAlphabet Inc,class A2.79%3.36%0.57%
MUMicron Technology, Inc.1.52%4.43%2.91%
AVGOBroadcom Inc2.43%3.16%0.73%
GOOGAlphabet Inc2.25%3.13%0.88%
METAMeta Platforms Inc1.77%2.78%1.01%
AMDAdvanced Micro Devices Inc1.08%3.45%2.37%

94.8% of QQQ is already inside IWB.

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

IWBQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IWB or QQQ?

IWB has an expense ratio of 0.15% while QQQ charges 0.18%. IWB is the cheaper option, by $3 a year on a $10,000 investment.

Which performed better, IWB or QQQ?

Over the past year IWB returned +15.63% vs +21.77% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (26 years), IWB annualized +7.05% vs +8.76% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IWB or QQQ?

QQQ has been the more volatile fund at 22.5% annualized versus 15.3% for IWB. Worst drawdown: IWB -56.4% vs QQQ -80.5%.

Should I hold both IWB and QQQ?

IWB and QQQ have a monthly-return correlation of 0.88, 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 IWB and QQQ?

94.8% of QQQ's money is in holdings IWB also owns. 94.8% of QQQ's is in holdings IWB also owns. They hold 88 positions in common, counted across the 853 positions we hold weights for in IWB and 102 in QQQ.

Which pays a higher dividend, IWB or QQQ?

IWB yields 0.93% while QQQ yields 0.44%, so IWB currently pays the higher dividend yield.

Is QQQ better than IWB?

IWB has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. IWB is less concentrated, with 34.8% 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.