IXJ vs QQQ
IXJ vs QQQ
iShares Global Healthcare ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IXJ offers more diversification with 109 holdings.
Side-by-Side Comparison
| Metric | IXJ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.18% | |
| AUM | $4.1B | $455.8B | |
| Dividend Yield | 1.47% | 0.41% | |
| Holdings | 125 | 108 | |
| YTD Return | +4.35% | +17.27% | |
| 1Y Return | +21.59% | +28.64% | |
| 3Y Return (annualized) | +7.37% | +24.88% | |
| 5Y Return (annualized) | +4.48% | +14.86% | |
| Volatility (annualized) | 13.2% | 30.6% | |
| Max Drawdown | -42.8% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 13, 2001 | Mar 10, 1999 |
IXJ vs QQQ Performance
iShares Global Healthcare ETF (IXJ) 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 IXJ returned +21.59% while QQQ returned +28.64%. Year to date, IXJ is up 4.35% versus a gain of 17.27% for QQQ.
Over three years, IXJ compounded at +7.37% per year against +24.88% for QQQ; over five years the annualized figures are +4.48% and +14.86% respectively. Across the full 25-year window we track, QQQ has the edge at +13.08% annualized vs +6.07%. 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 13.2% for IXJ. 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 -42.8% for IXJ 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IXJ charges 0.40% per year while QQQ charges 0.18%. On a $10,000 position that is $40 vs $18 annually, a gap of $22 per year that compounds over a long holding period. On income, IXJ currently yields 1.47% against 0.41% for QQQ.
Holdings Overlap
IXJ and QQQ share 9 holdings out of 203 unique holdings combined, representing a 3.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IXJ | Weight in QQQ | Difference |
|---|---|---|---|
| ROP | 3.68% | 0.16% | 3.52% |
| AMGN | 2.52% | 0.86% | 1.66% |
| GILD | 2.05% | 0.72% | 1.33% |
| ISRG | Pro | Pro | Pro |
| VRTX | Pro | Pro | Pro |
| REGN | Pro | Pro | Pro |
| IDXX | Pro | Pro | Pro |
| GEHC | Pro | Pro | Pro |
| DXCM | Pro | Pro | Pro |
See all 9 holdings IXJ shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, IXJ or QQQ?
IXJ has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, IXJ or QQQ?
Over the past year IXJ returned +21.59% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (25 years), IXJ annualized +6.07% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, IXJ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.2% for IXJ. Worst drawdown: IXJ -42.8% vs QQQ -83.0%.
Should I hold both IXJ and QQQ?
IXJ and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IXJ and QQQ?
IXJ and QQQ share 9 common holdings with a 3.7% weight overlap. Combined, they hold 203 unique securities.
Which pays a higher dividend, IXJ or QQQ?
IXJ yields 1.47% while QQQ yields 0.41%, so IXJ currently pays the higher dividend yield.
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