LQD vs QQQ
iShares iBoxx $ Investment Grade Corporate Bond ETF vs Invesco QQQ Trust, Series 1
Which is better, LQD or QQQ?
Long Term Mid Quality against Large Cap Growth.
LQD has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
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 | LQD | QQQ |
|---|---|---|
| Expense Ratio | 0.14%Best | 0.18% |
| AUM | $32.0B | $483.5B |
| Dividend Yield | 4.67% | 0.44% |
| Holdings | 3,134 | 107 |
| YTD Return | -1.97% | +17.95%Best |
| 1Y Return | -1.98% | +21.77%Best |
| 3Y Return (annualized) | +4.63% | +25.63%Best |
| 5Y Return (annualized) | -1.26% | +15.24%Best |
| Volatility (annualized) | 7.9%Best | 18.8% |
| Max Drawdown | -24.9%Best | -53.5% |
| $10,000 over 5 years | $9,386 | $20,324Best |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | Long Term Mid Quality | Large Cap Growth |
| Inception | Jul 22, 2002 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 26, 2002 to Sep 18, 2026 (24.1 years).
LQD 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
LQD vs QQQ Performance
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) 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 LQD returned -1.98% while QQQ returned +21.77%. Year to date, LQD is down 1.97% versus a gain of 17.95% for QQQ.
Over three years, LQD compounded at +4.63% per year against +25.63% for QQQ; over five years the annualized figures are -1.26% and +15.24% respectively. Across the full 24-year window we track, QQQ has the edge at +15.56% annualized vs +4.23%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 7.9% for LQD. 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 -24.9% for LQD and -53.5% 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 0.32. They move together some of the time, and apart the rest.
Fees and Cost Over Time
LQD charges 0.14% per year while QQQ charges 0.18%. On a $10,000 position that is $14 vs $18 annually, a gap of $4 per year that compounds over a long holding period. On income, LQD currently yields 4.67% against 0.44% for QQQ.
Holdings Overlap
At least 0.8% of QQQ's money is in holdings LQD also owns.
Stated as a floor: for LQD, our book for it covers 42.7% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 1,060 positions we hold weights for in LQD and 102 in QQQ, against full books of 3,134 and 107.
Top Shared Holdings
| Stock | Weight in LQD | Weight in QQQ | Difference |
|---|---|---|---|
| TMUST-Mobile Us Inc Com Usd0.00001 | 0.17% | 0.82% | 0.65% |
You are not choosing between two funds in isolation.
Whichever of LQD and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, LQD or QQQ?
LQD has an expense ratio of 0.14% while QQQ charges 0.18%. LQD is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, LQD or QQQ?
Over the past year LQD returned -1.98% vs +21.77% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (24 years), LQD annualized +4.23% vs +15.56% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, LQD or QQQ?
QQQ has been the more volatile fund at 18.8% annualized versus 7.9% for LQD. Worst drawdown: LQD -24.9% vs QQQ -53.5%.
Should I hold both LQD and QQQ?
LQD and QQQ have a monthly-return correlation of 0.32, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, LQD or QQQ?
LQD yields 4.67% while QQQ yields 0.44%, so LQD currently pays the higher dividend yield.
Is QQQ better than LQD?
LQD has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.