IYF vs QQQ
IYF vs QQQ
iShares US Financials ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IYF offers more diversification with 143 holdings.
Side-by-Side Comparison
| Metric | IYF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $4.6B | $455.8B | |
| Dividend Yield | 1.50% | 0.41% | |
| Holdings | 147 | 108 | |
| YTD Return | +6.40% | +18.20% | |
| 1Y Return | +15.38% | +27.63% | |
| 3Y Return (annualized) | +22.04% | +25.54% | |
| 5Y Return (annualized) | +12.05% | +15.12% | |
| Volatility (annualized) | 19.3% | 30.6% | |
| Max Drawdown | -80.2% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 22, 2000 | Mar 10, 1999 |
IYF vs QQQ Performance
iShares US Financials ETF (IYF) 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 IYF returned +15.38% while QQQ returned +27.63%. Year to date, IYF is up 6.40% versus a gain of 18.20% for QQQ.
Over three years, IYF compounded at +22.04% per year against +25.54% for QQQ; over five years the annualized figures are +12.05% and +15.12% respectively. Across the full 26-year window we track, QQQ has the edge at +13.11% annualized vs +5.49%. 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 19.3% for IYF. 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 -80.2% for IYF 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IYF 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, IYF currently yields 1.50% against 0.41% for QQQ.
Holdings Overlap
IYF and QQQ share 0 holdings out of 246 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, IYF or QQQ?
IYF 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, IYF or QQQ?
Over the past year IYF returned +15.38% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (26 years), IYF annualized +5.49% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, IYF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.3% for IYF. Worst drawdown: IYF -80.2% vs QQQ -83.0%.
Should I hold both IYF and QQQ?
IYF and QQQ have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYF and QQQ?
IYF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 246 unique securities.
Which pays a higher dividend, IYF or QQQ?
IYF yields 1.50% while QQQ yields 0.41%, so IYF currently pays the higher dividend yield.
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