IWO vs QQQ
iShares Russell 2000 Growth ETF vs Invesco QQQ Trust, Series 1
Which is better, IWO or QQQ?
Small Cap Growth against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. IWO is less concentrated, with 6.1% of the fund in its ten largest positions against 46.5%.
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
| Metric | IWO | QQQ |
|---|---|---|
| Expense Ratio | 0.24% | 0.18%Best |
| AUM | $14.6B | $483.5B |
| Dividend Yield | 0.44% | 0.44% |
| Holdings | 1,125 | 107 |
| YTD Return | +10.85% | +17.95%Best |
| 1Y Return | +12.22% | +21.77%Best |
| 3Y Return (annualized) | +17.08% | +25.63%Best |
| 5Y Return (annualized) | +4.90% | +15.24%Best |
| Volatility (annualized) | 21.6%Best | 22.4% |
| Max Drawdown | -60.3%Best | -80.5% |
| $10,000 over 5 years | $12,702 | $20,324Best |
| Top 10 Weight | 6.1%Best | 46.5% |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Small Cap Growth | Large Cap Growth |
| Inception | Jul 24, 2000 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Jul 28, 2000 to Sep 18, 2026 (26.1 years).
IWO 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 26.1 years both funds cover.
IWO vs QQQ Performance
iShares Russell 2000 Growth ETF (IWO) 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 IWO returned +12.22% while QQQ returned +21.77%. Year to date, IWO is up 10.85% versus a gain of 17.95% for QQQ.
Over three years, IWO compounded at +17.08% per year against +25.63% for QQQ; over five years the annualized figures are +4.90% and +15.24% respectively. Across the full 26-year window we track, QQQ has the edge at +8.57% annualized vs +6.32%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 22.4% compared with 21.6% for IWO. 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 -60.3% for IWO 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IWO charges 0.24% per year while QQQ charges 0.18%. On a $10,000 position that is $24 vs $18 annually, a gap of $6 per year that compounds over a long holding period. On income, IWO currently yields 0.44% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 1,025 holdings in IWO and 102 in QQQ, totalling 97.7% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 1,025 positions we hold weights for in IWO and 102 in QQQ, against full books of 1,125 and 107.
What only one of them owns
Our book lists 96 positions for QQQ that do not appear in our book for IWO (97.5% of the fund), and 875 for IWO that do not appear in QQQ (92.4%).
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.
You are not choosing between two funds in isolation.
Whichever of IWO and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IWO or QQQ?
IWO has an expense ratio of 0.24% while QQQ charges 0.18%. QQQ is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, IWO or QQQ?
Over the past year IWO returned +12.22% vs +21.77% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (26 years), IWO annualized +6.32% vs +8.57% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IWO or QQQ?
QQQ has been the more volatile fund at 22.4% annualized versus 21.6% for IWO. Worst drawdown: IWO -60.3% vs QQQ -80.5%.
Should I hold both IWO and QQQ?
IWO and QQQ have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IWO or QQQ?
IWO yields 0.44% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
Is QQQ better than IWO?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. IWO is less concentrated, with 6.1% 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.