QQQ vs TIP
Invesco QQQ Trust, Series 1 vs iShares TIPS Bond ETF
Quick Verdict
QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | TIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.18% | |
| AUM | $455.8B | $14.5B | |
| Dividend Yield | 0.41% | 3.77% | |
| Holdings | 108 | 50 | |
| YTD Return | +18.20% | +0.07% | |
| 1Y Return | +27.63% | +1.04% | |
| 3Y Return (annualized) | +25.54% | +3.48% | |
| 5Y Return (annualized) | +15.12% | +0.22% | |
| Volatility (annualized) | 30.6% | 5.7% | |
| Max Drawdown | -83.0% | -18.6% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Dec 4, 2003 |
QQQ vs TIP Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares TIPS Bond ETF (TIP) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +27.63% while TIP returned +1.04%. Year to date, QQQ is up 18.20% versus a gain of 0.07% for TIP.
Over three years, QQQ compounded at +25.54% per year against +3.48% for TIP; over five years the annualized figures are +15.12% and +0.22% respectively. Across the full 23-year window we track, QQQ has the edge at +13.11% annualized vs +1.21%. 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 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 -83.0% for QQQ and -18.6% for TIP. 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
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 0.41% against 3.77% for TIP.
Holdings Overlap
QQQ and TIP share 0 holdings out of 144 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 TIP?
QQQ has an expense ratio of 0.18% while TIP charges 0.18%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, QQQ or TIP?
Over the past year QQQ returned +27.63% vs +1.04% for TIP, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +13.11% vs +1.21% for TIP. Past performance does not guarantee future results.
Which is riskier, QQQ or TIP?
QQQ has been the more volatile fund at 30.6% annualized versus 5.7% for TIP. Worst drawdown: QQQ -83.0% vs TIP -18.6%.
Should I hold both QQQ and TIP?
QQQ and TIP have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TIP?
QQQ and TIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 144 unique securities.
Which pays a higher dividend, QQQ or TIP?
QQQ yields 0.41% while TIP yields 3.77%, so TIP currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.