QQQ vs STIP
Invesco QQQ Trust, Series 1 vs iShares 0-5 Year TIPS Bond ETF
Quick Verdict
STIP has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | STIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $455.8B | $15.9B | |
| Dividend Yield | 0.41% | 4.32% | |
| Holdings | 108 | 27 | |
| YTD Return | +19.68% | +1.20% | |
| 1Y Return | +26.75% | +2.16% | |
| 3Y Return (annualized) | +26.25% | +4.90% | |
| 5Y Return (annualized) | +15.39% | +3.00% | |
| Volatility (annualized) | 30.6% | 2.2% | |
| Max Drawdown | -83.0% | -6.9% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Dec 1, 2010 |
QQQ vs STIP Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares 0-5 Year TIPS Bond ETF (STIP) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +26.75% while STIP returned +2.16%. Year to date, QQQ is up 19.68% versus a gain of 1.20% for STIP.
Over three years, QQQ compounded at +26.25% per year against +4.90% for STIP; over five years the annualized figures are +15.39% and +3.00% respectively. Across the full 16-year window we track, QQQ has the edge at +13.15% annualized vs +1.51%. 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 2.2% for STIP. 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 -83.0% for QQQ and -6.9% for STIP. 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while STIP charges 0.03%. On a $10,000 position that is $18 vs $3 annually, a gap of $15 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.32% for STIP.
Holdings Overlap
QQQ and STIP share 0 holdings out of 127 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, QQQ or STIP?
QQQ has an expense ratio of 0.18% while STIP charges 0.03%. STIP is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or STIP?
Over the past year QQQ returned +26.75% vs +2.16% for STIP, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), QQQ annualized +13.15% vs +1.51% for STIP. Past performance does not guarantee future results.
Which is riskier, QQQ or STIP?
QQQ has been the more volatile fund at 30.6% annualized versus 2.2% for STIP. Worst drawdown: QQQ -83.0% vs STIP -6.9%.
Should I hold both QQQ and STIP?
QQQ and STIP have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and STIP?
QQQ and STIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 127 unique securities.
Which pays a higher dividend, QQQ or STIP?
QQQ yields 0.41% while STIP yields 4.32%, so STIP currently pays the higher dividend yield.
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