LQDB vs QQQ
iShares BBB Rated Corporate Bond ETF vs Invesco QQQ Trust, Series 1
Which is better, LQDB or QQQ?
QQQ has been ahead.
LQDB 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 | LQDB | QQQ |
|---|---|---|
| Expense Ratio | 0.15%Best | 0.18% |
| AUM | $59M | $483.5B |
| Dividend Yield | 4.80% | 0.44% |
| Holdings | 1,713 | 107 |
| YTD Return | -0.89% | +15.21%Best |
| 1Y Return | -0.83% | +19.78%Best |
| 3Y Return (annualized) | +5.24% | +24.58%Best |
| 5Y Return (annualized) | -0.07% | +13.93%Best |
| Volatility (annualized) | 7.7%Best | 20.6% |
| Max Drawdown | -21.6%Best | -35.1% |
| $10,000 over 5 years | $9,965 | $19,195Best |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Growth |
| Inception | May 18, 2021 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: May 20, 2021 to Sep 16, 2026 (5.3 years).
LQDB 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 5.3 years both funds cover.
LQDB vs QQQ Performance
iShares BBB Rated Corporate Bond ETF (LQDB) 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 LQDB returned -0.83% while QQQ returned +19.78%. Year to date, LQDB is down 0.89% versus a gain of 15.21% for QQQ.
Over three years, LQDB compounded at +5.24% per year against +24.58% for QQQ; over five years the annualized figures are -0.07% and +13.93% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.6% compared with 7.7% for LQDB. 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 -21.6% for LQDB and -35.1% 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 0.68. They move together some of the time, and apart the rest.
Fees and Cost Over Time
LQDB charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, LQDB currently yields 4.80% against 0.44% for QQQ.
Holdings Overlap
At least 1.0% of QQQ's money is in holdings LQDB also owns.
Stated as a floor: for LQDB, our book for it covers 77.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
QQQ and LQDB share little of their money.
2 positions in common, counted across the 1,173 positions we hold weights for in LQDB and 102 in QQQ, against full books of 1,713 and 107.
You are not choosing between two funds in isolation.
Whichever of LQDB 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, LQDB or QQQ?
LQDB has an expense ratio of 0.15% while QQQ charges 0.18%. LQDB is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, LQDB or QQQ?
Over the past year LQDB returned -0.83% vs +19.78% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, LQDB or QQQ?
QQQ has been the more volatile fund at 20.6% annualized versus 7.7% for LQDB. Worst drawdown: LQDB -21.6% vs QQQ -35.1%.
Should I hold both LQDB and QQQ?
LQDB and QQQ have a monthly-return correlation of 0.68, 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 LQDB and QQQ?
At least 1.0% of QQQ's money is in holdings LQDB also owns. Our book for LQDB is partial, so the real figure is this or higher. They hold 2 positions in common, counted across the 1,173 positions we hold weights for in LQDB and 102 in QQQ.
Which pays a higher dividend, LQDB or QQQ?
LQDB yields 4.80% while QQQ yields 0.44%, so LQDB currently pays the higher dividend yield.
Is QQQ better than LQDB?
LQDB 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.