IYG vs QQQ
iShares US Financial Services ETF vs Invesco QQQ Trust, Series 1
Which is better, IYG or QQQ?
Large Cap Value against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 62.8%.
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 | IYG | QQQ |
|---|---|---|
| Expense Ratio | 0.38% | 0.18%Best |
| AUM | $2.2B | $483.5B |
| Dividend Yield | 1.01% | 0.44% |
| Holdings | 104 | 107 |
| YTD Return | +0.54% | +21.71%Best |
| 1Y Return | +4.89% | +25.89%Best |
| 3Y Return (annualized) | +23.10% | +28.80%Best |
| 5Y Return (annualized) | +9.06% | +15.67%Best |
| Volatility (annualized) | 21.6%Best | 22.4% |
| Max Drawdown | -82.9% | -80.5%Best |
| $10,000 over 5 years | $15,429 | $20,706Best |
| Top 10 Weight | 62.8% | 46.5%Best |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Jun 12, 2000 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Jun 21, 2000 to Sep 25, 2026 (26.3 years).
IYG 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.
IYG vs QQQ Performance
iShares US Financial Services ETF (IYG) 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 IYG returned +4.89% while QQQ returned +25.89%. Year to date, IYG is up 0.54% versus a gain of 21.71% for QQQ.
Over three years, IYG compounded at +23.10% per year against +28.80% for QQQ; over five years the annualized figures are +9.06% and +15.67% respectively. Across the full 26-year window we track, QQQ has the edge at +8.12% annualized vs +5.12%.
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 IYG. 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 -82.9% for IYG 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 0.60. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IYG 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, IYG currently yields 1.01% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 99 holdings in IYG and 102 in QQQ, totalling 100.0% 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 99 positions we hold weights for in IYG and 102 in QQQ, against full books of 104 and 107.
What only one of them owns
Our book lists 96 positions for QQQ that do not appear in our book for IYG (97.5% of the fund), and 98 for IYG that do not appear in QQQ (99.9%).
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 IYG 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, IYG or QQQ?
IYG has an expense ratio of 0.38% while QQQ charges 0.18%. QQQ is the cheaper option, by $20 a year on a $10,000 investment.
Which performed better, IYG or QQQ?
Over the past year IYG returned +4.89% vs +25.89% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (26 years), IYG annualized +5.12% vs +8.12% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYG or QQQ?
QQQ has been the more volatile fund at 22.4% annualized versus 21.6% for IYG. Worst drawdown: IYG -82.9% vs QQQ -80.5%.
Should I hold both IYG and QQQ?
IYG and QQQ have a monthly-return correlation of 0.60, 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, IYG or QQQ?
IYG yields 1.01% while QQQ yields 0.44%, so IYG currently pays the higher dividend yield.
Is QQQ better than IYG?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 62.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.