IEF vs QQQ
IEF vs QQQ
iShares 7-10 Year Treasury Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IEF has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | IEF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $47.3B | $455.8B | |
| Dividend Yield | 3.88% | 0.41% | |
| Holdings | 15 | 108 | |
| YTD Return | -1.36% | +16.83% | |
| 1Y Return | +0.63% | +26.58% | |
| 3Y Return (annualized) | +3.37% | +24.70% | |
| 5Y Return (annualized) | -1.45% | +14.88% | |
| Volatility (annualized) | 6.6% | 30.6% | |
| Max Drawdown | -23.9% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 22, 2002 | Mar 10, 1999 |
IEF vs QQQ Performance
iShares 7-10 Year Treasury Bond ETF (IEF) 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 IEF returned +0.63% while QQQ returned +26.58%. Year to date, IEF is down 1.36% versus a gain of 16.83% for QQQ.
Over three years, IEF compounded at +3.37% per year against +24.70% for QQQ; over five years the annualized figures are -1.45% and +14.88% respectively. Across the full 24-year window we track, QQQ has the edge at +13.06% annualized vs +3.34%. 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 6.6% for IEF. 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 -23.9% for IEF 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 -0.10. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IEF charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, IEF currently yields 3.88% against 0.41% for QQQ.
Holdings Overlap
IEF and QQQ share 0 holdings out of 115 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, IEF or QQQ?
IEF has an expense ratio of 0.15% while QQQ charges 0.18%. IEF is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, IEF or QQQ?
Over the past year IEF returned +0.63% vs +26.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (24 years), IEF annualized +3.34% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, IEF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.6% for IEF. Worst drawdown: IEF -23.9% vs QQQ -83.0%.
Should I hold both IEF and QQQ?
IEF and QQQ have a monthly-return correlation of -0.10, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IEF and QQQ?
IEF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 115 unique securities.
Which pays a higher dividend, IEF or QQQ?
IEF yields 3.88% while QQQ yields 0.41%, so IEF currently pays the higher dividend yield.
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