QQQ vs TIP

QQQ vs TIP

Which is better, QQQ or TIP?

Large Cap Growth against Inflation Protection.

QQQ led over 1Y, 3Y, 5Y and the full window.

Lower Fees: TiedHigher Returns: QQQ

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

MetricQQQTIP
Expense Ratio0.18%Tie0.18%Tie
AUM$483.5B$15.0B
Dividend Yield0.44%4.98%
Holdings10751
YTD Return+17.21%Best-0.49%
1Y Return+22.10%Best-1.14%
3Y Return (annualized)+25.27%Best+3.58%
5Y Return (annualized)+14.60%Best-0.02%
Volatility (annualized)18.2%5.7%Best
Max Drawdown-53.5%-18.6%Best
$10,000 over 5 years$19,766Best$9,990
Fund FamilyInvesco (US)iShares by BlackRock (US)
CategoryEquityFixed Income
StyleLarge Cap GrowthInflation Protection
InceptionMar 10, 1999Dec 4, 2003

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Dec 5, 2003 to Sep 17, 2026 (22.8 years).

QQQ vs TIP 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.

QQQ vs TIP Performance

Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and iShares TIPS Bond ETF (TIP) is an ETF from iShares by BlackRock (US). Over the past year QQQ returned +22.10% while TIP returned -1.14%. Year to date, QQQ is up 17.21% versus a loss of 0.49% for TIP.

Over three years, QQQ compounded at +25.27% per year against +3.58% for TIP; over five years the annualized figures are +14.60% and -0.02% respectively. Across the full 23-year window we track, QQQ has the edge at +14.33% annualized vs +1.18%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 18.2% compared with 5.7% for TIP. 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 -53.5% for QQQ and -18.6% for TIP. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.29. They move largely independently of each other.

Fees and Cost Over Time

QQQ charges 0.18% per year while TIP charges 0.18%. On a $10,000 position that is $18 vs $18 annually. On income, QQQ currently yields 0.44% against 4.98% for TIP.

Holdings Overlap

We hold position weights for 102 holdings in QQQ and 44 in TIP, totalling 99.9% and 83.1% 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 102 positions we hold weights for in QQQ and 44 in TIP, against full books of 107 and 51.

You are not choosing between two funds in isolation.

Whichever of QQQ and TIP you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

QQQTIP

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, QQQ or TIP?

QQQ has an expense ratio of 0.18% while TIP charges 0.18%. At the precision these are quoted to, they cost the same.

Which performed better, QQQ or TIP?

Over the past year QQQ returned +22.10% vs -1.14% for TIP, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +14.33% vs +1.18% for TIP. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, QQQ or TIP?

QQQ has been the more volatile fund at 18.2% annualized versus 5.7% for TIP. Worst drawdown: QQQ -53.5% vs TIP -18.6%.

Should I hold both QQQ and TIP?

QQQ and TIP have a monthly-return correlation of 0.29, 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, QQQ or TIP?

QQQ yields 0.44% while TIP yields 4.98%, so TIP currently pays the higher dividend yield.

Is TIP better than QQQ?

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.