IQSM vs QQQ

Quick Verdict

IQSM has a lower expense ratio. QQQ delivered stronger 1-year returns. IQSM offers more diversification with 240 holdings.

Lower Fees: IQSMHigher Returns: QQQMore Diversified: IQSM

Side-by-Side Comparison

MetricIQSMQQQWinner
Expense Ratio0.15%0.18%
AUM$330M$455.8B
Dividend Yield1.04%0.41%
Holdings243108
YTD Return+16.67%+18.20%
1Y Return+26.09%+27.63%
3Y Return (annualized)+13.45%+25.54%
5Y Return (annualized)-+15.12%
Volatility (annualized)16.7%30.6%
Max Drawdown-23.7%-83.0%
Fund FamilyINDEXIQ ETF TRUSTInvesco (US)
CategoryEquityEquity
InceptionOct 25, 2022Mar 10, 1999

IQSM vs QQQ Performance

NYLI Candriam US Mid Cap Equity ETF (IQSM) is a ETF from INDEXIQ ETF TRUST and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IQSM returned +26.09% while QQQ returned +27.63%. Year to date, IQSM is up 16.67% versus a gain of 18.20% for QQQ.

Over three years, IQSM compounded at +13.45% per year against +25.54% for QQQ. Across the full 4-year window we track, IQSM has the edge at +14.07% annualized vs +13.11%. 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 16.7% for IQSM. 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 -23.7% for IQSM 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IQSM 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, IQSM currently yields 1.04% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

IQSM and QQQ share 0 holdings out of 343 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, IQSM or QQQ?

IQSM has an expense ratio of 0.15% while QQQ charges 0.18%. IQSM is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, IQSM or QQQ?

Over the past year IQSM returned +26.09% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), IQSM annualized +14.07% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, IQSM or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 16.7% for IQSM. Worst drawdown: IQSM -23.7% vs QQQ -83.0%.

Should I hold both IQSM and QQQ?

IQSM and QQQ have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IQSM and QQQ?

IQSM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 343 unique securities.

Which pays a higher dividend, IQSM or QQQ?

IQSM yields 1.04% while QQQ yields 0.41%, so IQSM currently pays the higher dividend yield.

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