IYT vs QQQ
iShares US Transportation 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 | IYT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $2.3B | $496.3B | |
| Dividend Yield | 0.92% | 0.44% | |
| Holdings | 47 | 108 | |
| YTD Return | +15.97% | +16.64% | |
| 1Y Return | +24.74% | +27.27% | |
| 3Y Return (annualized) | +13.43% | +25.96% | |
| 5Y Return (annualized) | +7.68% | +14.54% | |
| Volatility (annualized) | 20.1% | 30.6% | |
| Max Drawdown | -60.7% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 6, 2003 | Mar 10, 1999 |
IYT vs QQQ Performance
iShares US Transportation ETF (IYT) 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 IYT returned +24.74% while QQQ returned +27.27%. Year to date, IYT is up 15.97% versus a gain of 16.64% for QQQ.
Over three years, IYT compounded at +13.43% per year against +25.96% for QQQ; over five years the annualized figures are +7.68% and +14.54% respectively. Across the full 23-year window we track, QQQ has the edge at +13.03% annualized vs +9.06%. 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 20.1% for IYT. 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 -60.7% for IYT 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYT 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, IYT currently yields 0.92% against 0.44% for QQQ.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, IYT or QQQ?
IYT 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, IYT or QQQ?
Over the past year IYT returned +24.74% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), IYT annualized +9.06% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IYT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.1% for IYT. Worst drawdown: IYT -60.7% vs QQQ -83.0%.
Should I hold both IYT and QQQ?
IYT and QQQ have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYT and QQQ?
IYT and QQQ share 2 common holdings with a 0.6% weight overlap. Combined, they hold 144 unique securities.
Which pays a higher dividend, IYT or QQQ?
IYT yields 0.92% while QQQ yields 0.44%, so IYT currently pays the higher dividend yield.
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