IQLT vs QQQ
IQLT vs QQQ
iShares MSCI Intl Quality Factor ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IQLT offers more diversification with 295 holdings.
Side-by-Side Comparison
| Metric | IQLT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.18% | |
| AUM | $13.6B | $455.8B | |
| Dividend Yield | 2.41% | 0.41% | |
| Holdings | 325 | 108 | |
| YTD Return | +12.64% | +18.34% | |
| 1Y Return | +24.46% | +28.94% | |
| 3Y Return (annualized) | +15.64% | +25.28% | |
| 5Y Return (annualized) | +7.86% | +15.22% | |
| Volatility (annualized) | 14.8% | 30.6% | |
| Max Drawdown | -32.2% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 13, 2015 | Mar 10, 1999 |
IQLT vs QQQ Performance
iShares MSCI Intl Quality Factor ETF (IQLT) 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 IQLT returned +24.46% while QQQ returned +28.94%. Year to date, IQLT is up 12.64% versus a gain of 18.34% for QQQ.
Over three years, IQLT compounded at +15.64% per year against +25.28% for QQQ; over five years the annualized figures are +7.86% and +15.22% respectively. Across the full 12-year window we track, QQQ has the edge at +13.12% annualized vs +7.40%. 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 14.8% for IQLT. 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 -32.2% for IQLT 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IQLT charges 0.30% per year while QQQ charges 0.18%. On a $10,000 position that is $30 vs $18 annually, a gap of $12 per year that compounds over a long holding period. On income, IQLT currently yields 2.41% against 0.41% for QQQ.
Holdings Overlap
IQLT and QQQ share 2 holdings out of 396 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IQLT or QQQ?
IQLT has an expense ratio of 0.30% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, IQLT or QQQ?
Over the past year IQLT returned +24.46% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), IQLT annualized +7.40% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, IQLT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.8% for IQLT. Worst drawdown: IQLT -32.2% vs QQQ -83.0%.
Should I hold both IQLT and QQQ?
IQLT and QQQ have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IQLT and QQQ?
IQLT and QQQ share 2 common holdings with a 0.3% weight overlap. Combined, they hold 396 unique securities.
Which pays a higher dividend, IQLT or QQQ?
IQLT yields 2.41% while QQQ yields 0.41%, so IQLT currently pays the higher dividend yield.
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