IWC vs QQQ
iShares Microcap ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. IWC delivered stronger 1-year returns. IWC offers more diversification with 1279 holdings.
Side-by-Side Comparison
| Metric | IWC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $1.4B | $455.8B | |
| Dividend Yield | 0.94% | 0.41% | |
| Holdings | 1,380 | 108 | |
| YTD Return | +26.12% | +19.68% | |
| 1Y Return | +44.97% | +26.75% | |
| 3Y Return (annualized) | +23.26% | +26.25% | |
| 5Y Return (annualized) | +7.99% | +15.39% | |
| Volatility (annualized) | 21.6% | 30.6% | |
| Max Drawdown | -65.2% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 12, 2005 | Mar 10, 1999 |
IWC vs QQQ Performance
iShares Microcap ETF (IWC) 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 IWC returned +44.97% while QQQ returned +26.75%. Year to date, IWC is up 26.12% versus a gain of 19.68% for QQQ.
Over three years, IWC compounded at +23.26% per year against +26.25% for QQQ; over five years the annualized figures are +7.99% and +15.39% respectively. Across the full 21-year window we track, QQQ has the edge at +13.15% annualized vs +7.13%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 21.6% for IWC. 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 -65.2% for IWC 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IWC charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, IWC currently yields 0.94% against 0.41% for QQQ.
Holdings Overlap
IWC and QQQ share 0 holdings out of 1382 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, IWC or QQQ?
IWC has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, IWC or QQQ?
Over the past year IWC returned +44.97% vs +26.75% for QQQ, so IWC leads on 1-year performance. Over the longest common window we track (21 years), IWC annualized +7.13% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, IWC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.6% for IWC. Worst drawdown: IWC -65.2% vs QQQ -83.0%.
Should I hold both IWC and QQQ?
IWC and QQQ have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IWC and QQQ?
IWC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1382 unique securities.
Which pays a higher dividend, IWC or QQQ?
IWC yields 0.94% while QQQ yields 0.41%, so IWC currently pays the higher dividend yield.
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