IYR vs QQQ
iShares US Real Estate 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 | IYR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.18% | |
| AUM | $4.6B | $496.3B | |
| Dividend Yield | 2.14% | 0.44% | |
| Holdings | 65 | 108 | |
| YTD Return | +12.29% | +16.64% | |
| 1Y Return | +11.66% | +27.27% | |
| 3Y Return (annualized) | +11.03% | +25.96% | |
| 5Y Return (annualized) | +2.19% | +14.54% | |
| Volatility (annualized) | 19.8% | 30.6% | |
| Max Drawdown | -76.5% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Mar 10, 1999 |
IYR vs QQQ Performance
iShares US Real Estate ETF (IYR) 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 IYR returned +11.66% while QQQ returned +27.27%. Year to date, IYR is up 12.29% versus a gain of 16.64% for QQQ.
Over three years, IYR compounded at +11.03% per year against +25.96% for QQQ; over five years the annualized figures are +2.19% and +14.54% respectively. Across the full 26-year window we track, QQQ has the edge at +13.03% annualized vs +4.82%. 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 19.8% for IYR. 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 -76.5% for IYR 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
IYR charges 0.37% per year while QQQ charges 0.18%. On a $10,000 position that is $37 vs $18 annually, a gap of $19 per year that compounds over a long holding period. On income, IYR currently yields 2.14% against 0.44% for QQQ.
Holdings Overlap
IYR and QQQ share 0 holdings out of 164 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, IYR or QQQ?
IYR has an expense ratio of 0.37% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, IYR or QQQ?
Over the past year IYR returned +11.66% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (26 years), IYR annualized +4.82% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IYR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.8% for IYR. Worst drawdown: IYR -76.5% vs QQQ -83.0%.
Should I hold both IYR and QQQ?
IYR 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 IYR and QQQ?
IYR and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 164 unique securities.
Which pays a higher dividend, IYR or QQQ?
IYR yields 2.14% while QQQ yields 0.44%, so IYR currently pays the higher dividend yield.
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