INRO vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. INRO offers more diversification with 293 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: INRO

Side-by-Side Comparison

MetricINROQQQWinner
Expense Ratio0.42%0.18%
AUM$34M$455.8B
Dividend Yield0.59%0.41%
Holdings375108
YTD Return+14.82%+16.83%
1Y Return+24.45%+26.58%
3Y Return (annualized)-+24.70%
5Y Return (annualized)-+14.88%
Volatility (annualized)13.4%30.6%
Max Drawdown-20.0%-83.0%
Fund FamilyBlackRock, Inc. (US)Invesco (US)
CategoryEquityEquity
InceptionMar 26, 2024Mar 10, 1999

INRO vs QQQ Performance

iShares US Industry Rotation Active ETF (INRO) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year INRO returned +24.45% while QQQ returned +26.58%. Year to date, INRO is up 14.82% versus a gain of 16.83% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 13.4% for INRO. 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 -20.0% for INRO 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

INRO charges 0.42% per year while QQQ charges 0.18%. On a $10,000 position that is $42 vs $18 annually, a gap of $24 per year that compounds over a long holding period. On income, INRO currently yields 0.59% against 0.41% for QQQ.

Holdings Overlap

50.7%overlap

INRO and QQQ share 67 holdings out of 329 unique holdings combined, representing a 50.7% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in INROWeight in QQQDifference
AAPL8.48%7.46%1.02%
NVDA7.20%7.88%0.68%
MSFT4.77%4.65%0.12%
AMZNProProPro
MUProProPro
GOOGLProProPro
GOOGProProPro
AMDProProPro
AVGOProProPro
METAProProPro
See all 10 holdings INRO shares with QQQ
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, INRO or QQQ?

INRO has an expense ratio of 0.42% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $24 per year of difference.

Which performed better, INRO or QQQ?

Over the past year INRO returned +24.45% vs +26.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), INRO annualized +18.44% vs +13.06% for QQQ. Past performance does not guarantee future results.

Which is riskier, INRO or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 13.4% for INRO. Worst drawdown: INRO -20.0% vs QQQ -83.0%.

Should I hold both INRO and QQQ?

INRO and QQQ have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between INRO and QQQ?

INRO and QQQ share 67 common holdings with a 50.7% weight overlap. Combined, they hold 329 unique securities.

Which pays a higher dividend, INRO or QQQ?

INRO yields 0.59% while QQQ yields 0.41%, so INRO currently pays the higher dividend yield.

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