LQDI vs QQQ
iShares Inflation Hedged Corporate Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ delivered stronger 1-year returns. LQDI offers more diversification with 128 holdings.
Side-by-Side Comparison
| Metric | LQDI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.18% | |
| AUM | $71M | $496.3B | |
| Dividend Yield | 4.68% | 0.44% | |
| Holdings | 128 | 108 | |
| YTD Return | -1.88% | +16.19% | |
| 1Y Return | -1.49% | +25.22% | |
| 3Y Return (annualized) | +4.39% | +25.47% | |
| 5Y Return (annualized) | +0.38% | +14.34% | |
| Volatility (annualized) | 9.1% | 30.6% | |
| Max Drawdown | -29.0% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 8, 2018 | Mar 10, 1999 |
LQDI vs QQQ Performance
iShares Inflation Hedged Corporate Bond ETF (LQDI) 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 LQDI returned -1.49% while QQQ returned +25.22%. Year to date, LQDI is down 1.88% versus a gain of 16.19% for QQQ.
Over three years, LQDI compounded at +4.39% per year against +25.47% for QQQ; over five years the annualized figures are +0.38% and +14.34% respectively. Across the full 8-year window we track, QQQ has the edge at +13.01% annualized vs +3.72%. 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 9.1% for LQDI. 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 -29.0% for LQDI 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LQDI charges 0.18% per year while QQQ charges 0.18%. On a $10,000 position that is $18 vs $18 annually. On income, LQDI currently yields 4.68% against 0.44% for QQQ.
Holdings Overlap
LQDI and QQQ share 0 holdings out of 104 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, LQDI or QQQ?
LQDI has an expense ratio of 0.18% while QQQ charges 0.18%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, LQDI or QQQ?
Over the past year LQDI returned -1.49% vs +25.22% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), LQDI annualized +3.72% vs +13.01% for QQQ. Past performance does not guarantee future results.
Which is riskier, LQDI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 9.1% for LQDI. Worst drawdown: LQDI -29.0% vs QQQ -83.0%.
Should I hold both LQDI and QQQ?
LQDI and QQQ have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LQDI and QQQ?
LQDI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, LQDI or QQQ?
LQDI yields 4.68% while QQQ yields 0.44%, so LQDI currently pays the higher dividend yield.
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