IYE vs QQQ
iShares US Energy ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. IYE delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IYE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $1.8B | $496.3B | |
| Dividend Yield | 2.14% | 0.44% | |
| Holdings | 44 | 108 | |
| YTD Return | +36.62% | +19.52% | |
| 1Y Return | +47.95% | +26.68% | |
| 3Y Return (annualized) | +15.49% | +26.64% | |
| 5Y Return (annualized) | +23.88% | +15.36% | |
| Volatility (annualized) | 24.9% | 30.6% | |
| Max Drawdown | -78.1% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Mar 10, 1999 |
IYE vs QQQ Performance
iShares US Energy ETF (IYE) 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 IYE returned +47.95% while QQQ returned +26.68%. Year to date, IYE is up 36.62% versus a gain of 19.52% for QQQ.
Over three years, IYE compounded at +15.49% per year against +26.64% for QQQ; over five years the annualized figures are +23.88% and +15.36% respectively. Across the full 26-year window we track, QQQ has the edge at +13.14% annualized vs +5.90%. 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 24.9% for IYE. 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 -78.1% for IYE 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IYE charges 0.38% per year while QQQ charges 0.18%. On a $10,000 position that is $38 vs $18 annually, a gap of $20 per year that compounds over a long holding period. On income, IYE currently yields 2.14% against 0.44% for QQQ.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, IYE or QQQ?
IYE has an expense ratio of 0.38% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, IYE or QQQ?
Over the past year IYE returned +47.95% vs +26.68% for QQQ, so IYE leads on 1-year performance. Over the longest common window we track (26 years), IYE annualized +5.90% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, IYE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 24.9% for IYE. Worst drawdown: IYE -78.1% vs QQQ -83.0%.
Should I hold both IYE and QQQ?
IYE and QQQ have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYE and QQQ?
IYE and QQQ share 2 common holdings with a 0.5% weight overlap. Combined, they hold 141 unique securities.
Which pays a higher dividend, IYE or QQQ?
IYE yields 2.14% while QQQ yields 0.44%, so IYE currently pays the higher dividend yield.
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