IXJ vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IXJ offers more diversification with 109 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: IXJ

Side-by-Side Comparison

MetricIXJQQQWinner
Expense Ratio0.40%0.18%
AUM$4.1B$455.8B
Dividend Yield1.47%0.41%
Holdings125108
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 FamilyiShares by BlackRock (US)Invesco (US)
CategoryEquityEquity
InceptionNov 13, 2001Mar 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

3.7%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

StockWeight in IXJWeight in QQQDifference
ROP3.68%0.16%3.52%
AMGN2.52%0.86%1.66%
GILD2.05%0.72%1.33%
ISRGProProPro
VRTXProProPro
REGNProProPro
IDXXProProPro
GEHCProProPro
DXCMProProPro
See all 9 holdings IXJ shares with QQQ
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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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