ITDG vs QQQ

Quick Verdict

ITDG has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: ITDGHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricITDGQQQWinner
Expense Ratio0.12%0.18%
AUM$56M$455.8B
Dividend Yield1.43%0.41%
Holdings8108
YTD Return+13.35%+16.83%
1Y Return+24.41%+26.58%
3Y Return (annualized)-+24.70%
5Y Return (annualized)-+14.88%
Volatility (annualized)11.5%30.6%
Max Drawdown-16.6%-83.0%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryAllocation/BalancedEquity
InceptionOct 17, 2023Mar 10, 1999

ITDG vs QQQ Performance

iShares LifePath Target Date 2055 ETF (ITDG) 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 ITDG returned +24.41% while QQQ returned +26.58%. Year to date, ITDG is up 13.35% 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 11.5% for ITDG. 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 -16.6% for ITDG 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 0.85. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

ITDG charges 0.12% per year while QQQ charges 0.18%. On a $10,000 position that is $12 vs $18 annually, a gap of $6 per year that compounds over a long holding period. On income, ITDG currently yields 1.43% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

ITDG and QQQ share 0 holdings out of 110 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, ITDG or QQQ?

ITDG has an expense ratio of 0.12% while QQQ charges 0.18%. ITDG is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, ITDG or QQQ?

Over the past year ITDG returned +24.41% vs +26.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), ITDG annualized +24.05% vs +13.06% for QQQ. Past performance does not guarantee future results.

Which is riskier, ITDG or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 11.5% for ITDG. Worst drawdown: ITDG -16.6% vs QQQ -83.0%.

Should I hold both ITDG and QQQ?

ITDG and QQQ have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ITDG and QQQ?

ITDG and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 110 unique securities.

Which pays a higher dividend, ITDG or QQQ?

ITDG yields 1.43% while QQQ yields 0.41%, so ITDG currently pays the higher dividend yield.

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