ITDH vs QQQ

Quick Verdict

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

Lower Fees: ITDHHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricITDHQQQWinner
Expense Ratio0.12%0.18%
AUM$38M$455.8B
Dividend Yield1.43%0.41%
Holdings8108
YTD Return+14.28%+18.20%
1Y Return+25.29%+27.63%
3Y Return (annualized)-+25.54%
5Y Return (annualized)-+15.12%
Volatility (annualized)11.5%30.6%
Max Drawdown-16.3%-83.0%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryAllocation/BalancedEquity
InceptionOct 17, 2023Mar 10, 1999

ITDH vs QQQ Performance

iShares LifePath Target Date 2060 ETF (ITDH) 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 ITDH returned +25.29% while QQQ returned +27.63%. Year to date, ITDH is up 14.28% versus a gain of 18.20% 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 ITDH. 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 -16.3% for ITDH 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

ITDH 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, ITDH currently yields 1.43% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

ITDH 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, ITDH or QQQ?

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

Which performed better, ITDH or QQQ?

Over the past year ITDH returned +25.29% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), ITDH annualized +24.52% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, ITDH or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 11.5% for ITDH. Worst drawdown: ITDH -16.3% vs QQQ -83.0%.

Should I hold both ITDH and QQQ?

ITDH 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 ITDH and QQQ?

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

Which pays a higher dividend, ITDH or QQQ?

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

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