IYH vs QQQ
iShares US Healthcare ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. IYH delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IYH | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $3.7B | $496.3B | |
| Dividend Yield | 1.16% | 0.44% | |
| Holdings | 104 | 108 | |
| YTD Return | +13.69% | +16.64% | |
| 1Y Return | +29.73% | +27.27% | |
| 3Y Return (annualized) | +11.05% | +25.96% | |
| 5Y Return (annualized) | +5.94% | +14.54% | |
| Volatility (annualized) | 13.8% | 30.6% | |
| Max Drawdown | -43.5% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Mar 10, 1999 |
IYH vs QQQ Performance
iShares US Healthcare ETF (IYH) 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 IYH returned +29.73% while QQQ returned +27.27%. Year to date, IYH is up 13.69% versus a gain of 16.64% for QQQ.
Over three years, IYH compounded at +11.05% per year against +25.96% for QQQ; over five years the annualized figures are +5.94% and +14.54% respectively. Across the full 26-year window we track, QQQ has the edge at +13.03% annualized vs +7.24%. 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 13.8% for IYH. 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 -43.5% for IYH 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IYH 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, IYH currently yields 1.16% against 0.44% for QQQ.
Holdings Overlap
IYH and QQQ share 9 holdings out of 194 unique holdings combined, representing a 3.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IYH or QQQ?
IYH 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, IYH or QQQ?
Over the past year IYH returned +29.73% vs +27.27% for QQQ, so IYH leads on 1-year performance. Over the longest common window we track (26 years), IYH annualized +7.24% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IYH or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.8% for IYH. Worst drawdown: IYH -43.5% vs QQQ -83.0%.
Should I hold both IYH and QQQ?
IYH and QQQ have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYH and QQQ?
IYH and QQQ share 9 common holdings with a 3.8% weight overlap. Combined, they hold 194 unique securities.
Which pays a higher dividend, IYH or QQQ?
IYH yields 1.16% while QQQ yields 0.44%, so IYH currently pays the higher dividend yield.
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