IWB vs QQQ

Quick Verdict

IWB has a lower expense ratio. QQQ delivered stronger 1-year returns. IWB offers more diversification with 884 holdings.

Lower Fees: IWBHigher Returns: QQQMore Diversified: IWB

Side-by-Side Comparison

MetricIWBQQQWinner
Expense Ratio0.15%0.18%
AUM$47.8B$455.8B
Dividend Yield0.92%0.41%
Holdings1,029108
YTD Return+13.28%+18.34%
1Y Return+23.01%+28.94%
3Y Return (annualized)+20.84%+25.28%
5Y Return (annualized)+12.68%+15.22%
Volatility (annualized)15.3%30.6%
Max Drawdown-56.4%-83.0%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryEquityEquity
InceptionMay 15, 2000Mar 10, 1999

IWB vs QQQ Performance

iShares Russell 1000 ETF (IWB) 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 IWB returned +23.01% while QQQ returned +28.94%. Year to date, IWB is up 13.28% versus a gain of 18.34% for QQQ.

Over three years, IWB compounded at +20.84% per year against +25.28% for QQQ; over five years the annualized figures are +12.68% and +15.22% respectively. Across the full 26-year window we track, QQQ has the edge at +13.12% annualized vs +7.13%. 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 15.3% for IWB. 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 -56.4% for IWB 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 0.88. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IWB 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, IWB currently yields 0.92% against 0.41% for QQQ.

Holdings Overlap

49.9%overlap

IWB and QQQ share 92 holdings out of 895 unique holdings combined, representing a 49.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IWBWeight in QQQDifference
NVDA6.54%7.88%1.34%
AAPL6.48%7.46%0.98%
MSFT4.12%4.65%0.53%
AMZNProProPro
GOOGLProProPro
MUProProPro
GOOGProProPro
AVGOProProPro
AMDProProPro
METAProProPro
See all 10 holdings IWB shares with QQQ
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, IWB or QQQ?

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

Which performed better, IWB or QQQ?

Over the past year IWB returned +23.01% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (26 years), IWB annualized +7.13% vs +13.12% for QQQ. Past performance does not guarantee future results.

Which is riskier, IWB or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 15.3% for IWB. Worst drawdown: IWB -56.4% vs QQQ -83.0%.

Should I hold both IWB and QQQ?

IWB and QQQ have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IWB and QQQ?

IWB and QQQ share 92 common holdings with a 49.9% weight overlap. Combined, they hold 895 unique securities.

Which pays a higher dividend, IWB or QQQ?

IWB yields 0.92% while QQQ yields 0.41%, so IWB currently pays the higher dividend yield.

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