IXG vs QQQ
IXG vs QQQ
iShares Global Financials ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IXG offers more diversification with 222 holdings.
Side-by-Side Comparison
| Metric | IXG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.41% | 0.18% | |
| AUM | $674M | $455.8B | |
| Dividend Yield | 2.27% | 0.41% | |
| Holdings | 247 | 108 | |
| YTD Return | +12.06% | +18.34% | |
| 1Y Return | +24.20% | +28.94% | |
| 3Y Return (annualized) | +25.07% | +25.28% | |
| 5Y Return (annualized) | +14.92% | +15.22% | |
| Volatility (annualized) | 20.9% | 30.6% | |
| Max Drawdown | -80.0% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 12, 2001 | Mar 10, 1999 |
IXG vs QQQ Performance
iShares Global Financials ETF (IXG) 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 IXG returned +24.20% while QQQ returned +28.94%. Year to date, IXG is up 12.06% versus a gain of 18.34% for QQQ.
Over three years, IXG compounded at +25.07% per year against +25.28% for QQQ; over five years the annualized figures are +14.92% and +15.22% respectively. Across the full 25-year window we track, QQQ has the edge at +13.12% annualized vs +4.56%. 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 20.9% for IXG. 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 -80.0% for IXG 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IXG charges 0.41% per year while QQQ charges 0.18%. On a $10,000 position that is $41 vs $18 annually, a gap of $23 per year that compounds over a long holding period. On income, IXG currently yields 2.27% against 0.41% for QQQ.
Holdings Overlap
IXG and QQQ share 1 holdings out of 324 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IXG | Weight in QQQ | Difference |
|---|---|---|---|
| PYPL | 0.26% | 0.19% | 0.07% |
Frequently Asked Questions
Which is cheaper, IXG or QQQ?
IXG has an expense ratio of 0.41% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $23 per year of difference.
Which performed better, IXG or QQQ?
Over the past year IXG returned +24.20% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (25 years), IXG annualized +4.56% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, IXG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.9% for IXG. Worst drawdown: IXG -80.0% vs QQQ -83.0%.
Should I hold both IXG and QQQ?
IXG and QQQ have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IXG and QQQ?
IXG and QQQ share 1 common holdings with a 0.2% weight overlap. Combined, they hold 324 unique securities.
Which pays a higher dividend, IXG or QQQ?
IXG yields 2.27% while QQQ yields 0.41%, so IXG currently pays the higher dividend yield.
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