IBHI vs QQQ
IBHI vs QQQ
iShares iBonds 2029 Term High Yield and Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IBHI offers more diversification with 376 holdings.
Side-by-Side Comparison
| Metric | IBHI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $495M | $455.8B | |
| Dividend Yield | 6.70% | 0.41% | |
| Holdings | 381 | 108 | |
| YTD Return | -1.48% | +17.27% | |
| 1Y Return | +1.07% | +28.64% | |
| 3Y Return (annualized) | +7.12% | +24.88% | |
| 5Y Return (annualized) | - | +14.86% | |
| Volatility (annualized) | 8.7% | 30.6% | |
| Max Drawdown | -13.7% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 8, 2022 | Mar 10, 1999 |
IBHI vs QQQ Performance
iShares iBonds 2029 Term High Yield and Income ETF (IBHI) 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 IBHI returned +1.07% while QQQ returned +28.64%. Year to date, IBHI is down 1.48% versus a gain of 17.27% for QQQ.
Over three years, IBHI compounded at +7.12% per year against +24.88% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.08% annualized vs +4.13%. 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 8.7% for IBHI. 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 -13.7% for IBHI 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBHI charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, IBHI currently yields 6.70% against 0.41% for QQQ.
Holdings Overlap
IBHI and QQQ share 0 holdings out of 479 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, IBHI or QQQ?
IBHI has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, IBHI or QQQ?
Over the past year IBHI returned +1.07% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), IBHI annualized +4.13% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBHI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.7% for IBHI. Worst drawdown: IBHI -13.7% vs QQQ -83.0%.
Should I hold both IBHI and QQQ?
IBHI and QQQ have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHI and QQQ?
IBHI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 479 unique securities.
Which pays a higher dividend, IBHI or QQQ?
IBHI yields 6.70% while QQQ yields 0.41%, so IBHI currently pays the higher dividend yield.
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