IYM vs QQQ
iShares US Basic Materials ETF vs Invesco QQQ Trust, Series 1
Which is better, IYM or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. IYM led over 1Y, QQQ over 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 67.8%.
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 | IYM | QQQ |
|---|---|---|
| Expense Ratio | 0.38% | 0.18%Best |
| AUM | $1.1B | $483.5B |
| Dividend Yield | 1.21% | 0.44% |
| Holdings | 43 | 107 |
| YTD Return | +21.96%Best | +17.11% |
| 1Y Return | +31.12%Best | +23.99% |
| 3Y Return (annualized) | +14.92% | +24.62%Best |
| 5Y Return (annualized) | +9.56% | +14.23%Best |
| Volatility (annualized) | 22.2%Best | 22.4% |
| Max Drawdown | -68.1%Best | -80.5% |
| $10,000 over 5 years | $15,786 | $19,449Best |
| Top 10 Weight | 67.8% | 46.5%Best |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Jun 12, 2000 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Jun 20, 2000 to Sep 9, 2026 (26.2 years).
IYM 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 26.2 years both funds cover.
IYM vs QQQ Performance
iShares US Basic Materials ETF (IYM) 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 IYM returned +31.12% while QQQ returned +23.99%. Year to date, IYM is up 21.96% versus a gain of 17.11% for QQQ.
Over three years, IYM compounded at +14.92% per year against +24.62% for QQQ; over five years the annualized figures are +9.56% and +14.23% respectively. Across the full 26-year window we track, QQQ has the edge at +8.03% annualized vs +7.04%.
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 22.2% for IYM. 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 -68.1% for IYM 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 0.62. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IYM 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, IYM currently yields 1.21% against 0.44% for QQQ.
Holdings Overlap
24.2% of IYM's money is in holdings QQQ also owns. 1.3% of QQQ's money is in holdings IYM also owns.
IYM and QQQ share little of their money.
2 positions in common, counted across the 40 positions we hold weights for in IYM and 102 in QQQ, against full books of 43 and 107.
What only one of them owns
Our book lists 93 positions for QQQ that do not appear in our book for IYM (95.8% of the fund), and 35 for IYM that do not appear in QQQ (71.6%).
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.
24.2% of IYM is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IYM or QQQ?
IYM 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, IYM or QQQ?
Over the past year IYM returned +31.12% vs +23.99% for QQQ, so IYM leads on 1-year performance. Over the longest common window we track (26 years), IYM annualized +7.04% vs +8.03% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYM or QQQ?
QQQ has been the more volatile fund at 22.4% annualized versus 22.2% for IYM. Worst drawdown: IYM -68.1% vs QQQ -80.5%.
Should I hold both IYM and QQQ?
IYM and QQQ have a monthly-return correlation of 0.62, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IYM and QQQ?
24.2% of IYM's money is in holdings QQQ also owns. 1.3% of QQQ's is in holdings IYM also owns. They hold 2 positions in common, counted across the 40 positions we hold weights for in IYM and 102 in QQQ.
Which pays a higher dividend, IYM or QQQ?
IYM yields 1.21% while QQQ yields 0.44%, so IYM currently pays the higher dividend yield.
Is QQQ better than IYM?
QQQ has a lower expense ratio. IYM led over 1Y, QQQ over 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 67.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.