IHY vs QQQ
IHY vs QQQ
VanEck International High Yield Bond vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IHY offers more diversification with 312 holdings.
Side-by-Side Comparison
| Metric | IHY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.18% | |
| AUM | $43M | $455.8B | |
| Dividend Yield | 5.68% | 0.41% | |
| Holdings | 591 | 108 | |
| YTD Return | +1.00% | +18.34% | |
| 1Y Return | +3.81% | +28.94% | |
| 3Y Return (annualized) | +7.96% | +25.28% | |
| 5Y Return (annualized) | +1.79% | +15.22% | |
| Volatility (annualized) | 8.7% | 30.6% | |
| Max Drawdown | -32.1% | -83.0% | |
| Fund Family | VanEck | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 2, 2012 | Mar 10, 1999 |
IHY vs QQQ Performance
VanEck International High Yield Bond (IHY) is a ETF from VanEck and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IHY returned +3.81% while QQQ returned +28.94%. Year to date, IHY is up 1.00% versus a gain of 18.34% for QQQ.
Over three years, IHY compounded at +7.96% per year against +25.28% for QQQ; over five years the annualized figures are +1.79% and +15.22% respectively. Across the full 14-year window we track, QQQ has the edge at +13.12% annualized vs +0.74%. 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 IHY. 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 -32.1% for IHY 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IHY charges 0.40% per year while QQQ charges 0.18%. On a $10,000 position that is $40 vs $18 annually, a gap of $22 per year that compounds over a long holding period. On income, IHY currently yields 5.68% against 0.41% for QQQ.
Holdings Overlap
IHY and QQQ share 0 holdings out of 415 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, IHY or QQQ?
IHY has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, IHY or QQQ?
Over the past year IHY returned +3.81% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), IHY annualized +0.74% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, IHY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.7% for IHY. Worst drawdown: IHY -32.1% vs QQQ -83.0%.
Should I hold both IHY and QQQ?
IHY and QQQ have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IHY and QQQ?
IHY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 415 unique securities.
Which pays a higher dividend, IHY or QQQ?
IHY yields 5.68% while QQQ yields 0.41%, so IHY currently pays the higher dividend yield.
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