IUSB vs QQQ
IUSB vs QQQ
iShares Core Universal USD Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IUSB has a lower expense ratio. QQQ delivered stronger 1-year returns. IUSB offers more diversification with 9319 holdings.
Side-by-Side Comparison
| Metric | IUSB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.18% | |
| AUM | $43.1B | $455.8B | |
| Dividend Yield | 4.20% | 0.41% | |
| Holdings | 17,578 | 108 | |
| YTD Return | +0.00% | +17.27% | |
| 1Y Return | +2.36% | +28.64% | |
| 3Y Return (annualized) | +4.60% | +24.88% | |
| 5Y Return (annualized) | +0.04% | +14.86% | |
| Volatility (annualized) | 4.8% | 30.6% | |
| Max Drawdown | -50.2% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 10, 2014 | Mar 10, 1999 |
IUSB vs QQQ Performance
iShares Core Universal USD Bond ETF (IUSB) 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 IUSB returned +2.36% while QQQ returned +28.64%. Year to date, IUSB is up 0.00% versus a gain of 17.27% for QQQ.
Over three years, IUSB compounded at +4.60% per year against +24.88% for QQQ; over five years the annualized figures are +0.04% and +14.86% respectively. Across the full 12-year window we track, QQQ has the edge at +13.08% annualized vs +0.69%. 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 4.8% for IUSB. 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 -50.2% for IUSB 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IUSB charges 0.06% per year while QQQ charges 0.18%. On a $10,000 position that is $6 vs $18 annually, a gap of $12 per year that compounds over a long holding period. On income, IUSB currently yields 4.20% against 0.41% for QQQ.
Holdings Overlap
IUSB and QQQ share 1 holdings out of 9421 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IUSB | Weight in QQQ | Difference |
|---|---|---|---|
| LRCX | 0.00% | 1.82% | 1.82% |
Frequently Asked Questions
Which is cheaper, IUSB or QQQ?
IUSB has an expense ratio of 0.06% while QQQ charges 0.18%. IUSB is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, IUSB or QQQ?
Over the past year IUSB returned +2.36% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), IUSB annualized +0.69% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, IUSB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.8% for IUSB. Worst drawdown: IUSB -50.2% vs QQQ -83.0%.
Should I hold both IUSB and QQQ?
IUSB and QQQ have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IUSB and QQQ?
IUSB and QQQ share 1 common holdings with a 0.0% weight overlap. Combined, they hold 9421 unique securities.
Which pays a higher dividend, IUSB or QQQ?
IUSB yields 4.20% while QQQ yields 0.41%, so IUSB currently pays the higher dividend yield.
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