GOVT vs QQQ
GOVT vs QQQ
iShares US Treasury Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
GOVT has a lower expense ratio. QQQ delivered stronger 1-year returns. GOVT offers more diversification with 188 holdings.
Side-by-Side Comparison
| Metric | GOVT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.18% | |
| AUM | $43.6B | $455.8B | |
| Dividend Yield | 3.57% | 0.41% | |
| Holdings | 216 | 108 | |
| YTD Return | -2.28% | +18.20% | |
| 1Y Return | -0.79% | +27.63% | |
| 3Y Return (annualized) | +2.34% | +25.54% | |
| 5Y Return (annualized) | -1.22% | +15.12% | |
| Volatility (annualized) | 4.5% | 30.6% | |
| Max Drawdown | -23.4% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 14, 2012 | Mar 10, 1999 |
GOVT vs QQQ Performance
iShares US Treasury Bond ETF (GOVT) 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 GOVT returned -0.79% while QQQ returned +27.63%. Year to date, GOVT is down 2.28% versus a gain of 18.20% for QQQ.
Over three years, GOVT compounded at +2.34% per year against +25.54% for QQQ; over five years the annualized figures are -1.22% and +15.12% respectively. Across the full 15-year window we track, QQQ has the edge at +13.11% annualized vs +1.04%. 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 4.5% for GOVT. 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 -23.4% for GOVT 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 0.17. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GOVT charges 0.05% per year while QQQ charges 0.18%. On a $10,000 position that is $5 vs $18 annually, a gap of $13 per year that compounds over a long holding period. On income, GOVT currently yields 3.57% against 0.41% for QQQ.
Holdings Overlap
GOVT and QQQ share 0 holdings out of 291 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, GOVT or QQQ?
GOVT has an expense ratio of 0.05% while QQQ charges 0.18%. GOVT is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, GOVT or QQQ?
Over the past year GOVT returned -0.79% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), GOVT annualized +1.04% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, GOVT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.5% for GOVT. Worst drawdown: GOVT -23.4% vs QQQ -83.0%.
Should I hold both GOVT and QQQ?
GOVT and QQQ have a monthly-return correlation of 0.17, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GOVT and QQQ?
GOVT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 291 unique securities.
Which pays a higher dividend, GOVT or QQQ?
GOVT yields 3.57% while QQQ yields 0.41%, so GOVT currently pays the higher dividend yield.
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