IBHK vs QQQ
IBHK vs QQQ
iShares iBonds 2031 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. IBHK offers more diversification with 186 holdings.
Side-by-Side Comparison
| Metric | IBHK | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $71M | $455.8B | |
| Dividend Yield | 6.47% | 0.41% | |
| Holdings | 283 | 108 | |
| YTD Return | -1.53% | +17.27% | |
| 1Y Return | +1.08% | +28.64% | |
| 3Y Return (annualized) | - | +24.88% | |
| 5Y Return (annualized) | - | +14.86% | |
| Volatility (annualized) | 4.0% | 30.6% | |
| Max Drawdown | -4.8% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 22, 2024 | Mar 10, 1999 |
IBHK vs QQQ Performance
iShares iBonds 2031 Term High Yield and Income ETF (IBHK) 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 IBHK returned +1.08% while QQQ returned +28.64%. Year to date, IBHK is down 1.53% versus a gain of 17.27% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 4.0% for IBHK. 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 -4.8% for IBHK 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBHK 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, IBHK currently yields 6.47% against 0.41% for QQQ.
Holdings Overlap
IBHK and QQQ share 0 holdings out of 289 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, IBHK or QQQ?
IBHK 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, IBHK or QQQ?
Over the past year IBHK returned +1.08% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), IBHK annualized +5.39% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, IBHK or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.0% for IBHK. Worst drawdown: IBHK -4.8% vs QQQ -83.0%.
Should I hold both IBHK and QQQ?
IBHK and QQQ have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHK and QQQ?
IBHK and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 289 unique securities.
Which pays a higher dividend, IBHK or QQQ?
IBHK yields 6.47% while QQQ yields 0.41%, so IBHK currently pays the higher dividend yield.
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