LQDW vs QQQ
iShares Investment Grade Corporate Bond BuyWrite Strategy ETF vs Invesco QQQ Trust, Series 1
Which is better, LQDW or QQQ?
Investment Grade Bond against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y 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 | LQDW | QQQ |
|---|---|---|
| Expense Ratio | 0.34% | 0.18%Best |
| AUM | $318M | $483.5B |
| Dividend Yield | 12.32% | 0.44% |
| Holdings | 3,135 | 107 |
| YTD Return | -6.74% | +16.87%Best |
| 1Y Return | -6.14% | +22.98%Best |
| 3Y Return (annualized) | +0.73% | +24.98%Best |
| 5Y Return (annualized) | - | +14.39% |
| Volatility (annualized) | 5.9%Best | 18.9% |
| Max Drawdown | -9.2%Best | -22.8% |
| $10,000 over 4.1 years | $10,012 | $23,524Best |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | Investment Grade Bond | Large Cap Growth |
| Inception | Aug 18, 2022 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 4.1 years row, are measured over the window both funds cover: Aug 22, 2022 to Sep 11, 2026 (4.1 years).
LQDW 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.
LQDW vs QQQ Performance
iShares Investment Grade Corporate Bond BuyWrite Strategy ETF (LQDW) 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 LQDW returned -6.14% while QQQ returned +22.98%. Year to date, LQDW is down 6.74% versus a gain of 16.87% for QQQ.
Over three years, LQDW compounded at +0.73% per year against +24.98% for QQQ. Across the full 4-year window we track, QQQ has the edge at +23.20% annualized vs +0.03%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.9% compared with 5.9% for LQDW. 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 -9.2% for LQDW and -22.8% 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 0.59. They move together some of the time, and apart the rest.
Fees and Cost Over Time
LQDW charges 0.34% per year while QQQ charges 0.18%. On a $10,000 position that is $34 vs $18 annually, a gap of $16 per year that compounds over a long holding period. On income, LQDW currently yields 12.32% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 2 holdings in LQDW and 102 in QQQ, totalling 100.1% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 2 positions we hold weights for in LQDW and 102 in QQQ, against full books of 3,135 and 107.
You are not choosing between two funds in isolation.
Whichever of LQDW 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, LQDW or QQQ?
LQDW has an expense ratio of 0.34% while QQQ charges 0.18%. QQQ is the cheaper option, by $16 a year on a $10,000 investment.
Which performed better, LQDW or QQQ?
Over the past year LQDW returned -6.14% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), LQDW annualized +0.03% vs +23.20% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, LQDW or QQQ?
QQQ has been the more volatile fund at 18.9% annualized versus 5.9% for LQDW. Worst drawdown: LQDW -9.2% vs QQQ -22.8%.
Should I hold both LQDW and QQQ?
LQDW and QQQ have a monthly-return correlation of 0.59, 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, LQDW or QQQ?
LQDW yields 12.32% while QQQ yields 0.44%, so LQDW currently pays the higher dividend yield.
Is QQQ better than LQDW?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.