AGG vs QQQ
AGG vs QQQ
iShares Core US Aggregate Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
AGG has a lower expense ratio. QQQ delivered stronger 1-year returns. AGG offers more diversification with 1959 holdings.
Side-by-Side Comparison
| Metric | AGG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.18% | |
| AUM | $137.7B | $455.8B | |
| Dividend Yield | 3.97% | 0.41% | |
| Holdings | 13,269 | 108 | |
| YTD Return | -0.30% | +18.20% | |
| 1Y Return | +2.08% | +27.63% | |
| 3Y Return (annualized) | +3.98% | +25.54% | |
| 5Y Return (annualized) | -0.23% | +15.12% | |
| Volatility (annualized) | 4.4% | 30.6% | |
| Max Drawdown | -18.4% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 22, 2003 | Mar 10, 1999 |
AGG vs QQQ Performance
iShares Core US Aggregate Bond ETF (AGG) 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 AGG returned +2.08% while QQQ returned +27.63%. Year to date, AGG is down 0.30% versus a gain of 18.20% for QQQ.
Over three years, AGG compounded at +3.98% per year against +25.54% for QQQ; over five years the annualized figures are -0.23% and +15.12% respectively. Across the full 23-year window we track, QQQ has the edge at +13.11% annualized vs +3.01%. 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 4.4% for AGG. 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 -18.4% for AGG 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AGG charges 0.03% per year while QQQ charges 0.18%. On a $10,000 position that is $3 vs $18 annually, a gap of $15 per year that compounds over a long holding period. On income, AGG currently yields 3.97% against 0.41% for QQQ.
Holdings Overlap
AGG and QQQ share 1 holdings out of 2061 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in AGG | Weight in QQQ | Difference |
|---|---|---|---|
| KDP | 0.00% | 0.19% | 0.19% |
Frequently Asked Questions
Which is cheaper, AGG or QQQ?
AGG has an expense ratio of 0.03% while QQQ charges 0.18%. AGG is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, AGG or QQQ?
Over the past year AGG returned +2.08% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), AGG annualized +3.01% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, AGG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.4% for AGG. Worst drawdown: AGG -18.4% vs QQQ -83.0%.
Should I hold both AGG and QQQ?
AGG and QQQ have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AGG and QQQ?
AGG and QQQ share 1 common holdings with a 0.0% weight overlap. Combined, they hold 2061 unique securities.
Which pays a higher dividend, AGG or QQQ?
AGG yields 3.97% while QQQ yields 0.41%, so AGG currently pays the higher dividend yield.
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