IYK vs QQQ
iShares US Consumer Staples ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IYK | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $1.4B | $496.3B | |
| Dividend Yield | 2.52% | 0.44% | |
| Holdings | 57 | 108 | |
| YTD Return | +14.07% | +16.64% | |
| 1Y Return | +8.05% | +27.27% | |
| 3Y Return (annualized) | +7.89% | +25.96% | |
| 5Y Return (annualized) | +6.59% | +14.54% | |
| Volatility (annualized) | 13.1% | 30.6% | |
| Max Drawdown | -44.1% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Mar 10, 1999 |
IYK vs QQQ Performance
iShares US Consumer Staples ETF (IYK) 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 IYK returned +8.05% while QQQ returned +27.27%. Year to date, IYK is up 14.07% versus a gain of 16.64% for QQQ.
Over three years, IYK compounded at +7.89% per year against +25.96% for QQQ; over five years the annualized figures are +6.59% and +14.54% respectively. Across the full 26-year window we track, QQQ has the edge at +13.03% annualized vs +7.22%. 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 13.1% for IYK. 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 -44.1% for IYK 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IYK 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, IYK currently yields 2.52% against 0.44% for QQQ.
Holdings Overlap
IYK and QQQ share 5 holdings out of 151 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IYK or QQQ?
IYK 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, IYK or QQQ?
Over the past year IYK returned +8.05% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (26 years), IYK annualized +7.22% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IYK or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.1% for IYK. Worst drawdown: IYK -44.1% vs QQQ -83.0%.
Should I hold both IYK and QQQ?
IYK and QQQ have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYK and QQQ?
IYK and QQQ share 5 common holdings with a 1.9% weight overlap. Combined, they hold 151 unique securities.
Which pays a higher dividend, IYK or QQQ?
IYK yields 2.52% while QQQ yields 0.44%, so IYK currently pays the higher dividend yield.
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