IGCB vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IGCB offers more diversification with 318 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: IGCB

Side-by-Side Comparison

MetricIGCBQQQWinner
Expense Ratio0.35%0.18%
AUM-$455.8B
Dividend Yield4.73%0.41%
Holdings391108
YTD Return-0.92%+18.20%
1Y Return+1.29%+27.63%
3Y Return (annualized)-+25.54%
5Y Return (annualized)-+15.12%
Volatility (annualized)4.0%30.6%
Max Drawdown-4.2%-83.0%
Fund FamilyTCW ETFsInvesco (US)
CategoryFixed IncomeEquity
InceptionJun 29, 2018Mar 10, 1999

IGCB vs QQQ Performance

TCW Corporate Bond ETF (IGCB) is a ETF from TCW ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IGCB returned +1.29% while QQQ returned +27.63%. Year to date, IGCB is down 0.92% versus a gain of 18.20% 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 IGCB. 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 -4.2% for IGCB 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IGCB 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, IGCB currently yields 4.73% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

IGCB and QQQ share 0 holdings out of 421 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, IGCB or QQQ?

IGCB 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, IGCB or QQQ?

Over the past year IGCB returned +1.29% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), IGCB annualized +3.96% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, IGCB or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 4.0% for IGCB. Worst drawdown: IGCB -4.2% vs QQQ -83.0%.

Should I hold both IGCB and QQQ?

IGCB and QQQ have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IGCB and QQQ?

IGCB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 421 unique securities.

Which pays a higher dividend, IGCB or QQQ?

IGCB yields 4.73% while QQQ yields 0.41%, so IGCB currently pays the higher dividend yield.

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