ITDD vs QQQ
ITDD vs QQQ
iShares LifePath Target Date 2040 ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
ITDD has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | ITDD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.11% | 0.18% | |
| AUM | $103M | $455.8B | |
| Dividend Yield | 1.67% | 0.41% | |
| Holdings | 15 | 108 | |
| YTD Return | +10.49% | +18.34% | |
| 1Y Return | +19.41% | +28.94% | |
| 3Y Return (annualized) | - | +25.28% | |
| 5Y Return (annualized) | - | +15.22% | |
| Volatility (annualized) | 9.8% | 30.6% | |
| Max Drawdown | -12.5% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Oct 17, 2023 | Mar 10, 1999 |
ITDD vs QQQ Performance
iShares LifePath Target Date 2040 ETF (ITDD) 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 ITDD returned +19.41% while QQQ returned +28.94%. Year to date, ITDD is up 10.49% versus a gain of 18.34% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 9.8% for ITDD. 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 -12.5% for ITDD 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ITDD charges 0.11% per year while QQQ charges 0.18%. On a $10,000 position that is $11 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, ITDD currently yields 1.67% against 0.41% for QQQ.
Holdings Overlap
ITDD and QQQ share 0 holdings out of 117 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, ITDD or QQQ?
ITDD has an expense ratio of 0.11% while QQQ charges 0.18%. ITDD is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, ITDD or QQQ?
Over the past year ITDD returned +19.41% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), ITDD annualized +20.15% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, ITDD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 9.8% for ITDD. Worst drawdown: ITDD -12.5% vs QQQ -83.0%.
Should I hold both ITDD and QQQ?
ITDD and QQQ have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ITDD and QQQ?
ITDD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 117 unique securities.
Which pays a higher dividend, ITDD or QQQ?
ITDD yields 1.67% while QQQ yields 0.41%, so ITDD currently pays the higher dividend yield.
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