IYC vs QQQ
IYC vs QQQ
iShares U.S. Consumer Discretionary ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IYC offers more diversification with 158 holdings.
Side-by-Side Comparison
| Metric | IYC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $1.1B | $455.8B | |
| Dividend Yield | 0.51% | 0.41% | |
| Holdings | 162 | 108 | |
| YTD Return | +0.43% | +18.34% | |
| 1Y Return | +4.11% | +28.94% | |
| 3Y Return (annualized) | +13.08% | +25.28% | |
| 5Y Return (annualized) | +6.44% | +15.22% | |
| Volatility (annualized) | 17.5% | 30.6% | |
| Max Drawdown | -54.0% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Mar 10, 1999 |
IYC vs QQQ Performance
iShares U.S. Consumer Discretionary ETF (IYC) 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 IYC returned +4.11% while QQQ returned +28.94%. Year to date, IYC is up 0.43% versus a gain of 18.34% for QQQ.
Over three years, IYC compounded at +13.08% per year against +25.28% for QQQ; over five years the annualized figures are +6.44% and +15.22% respectively. Across the full 26-year window we track, QQQ has the edge at +13.12% annualized vs +7.81%. 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 17.5% for IYC. 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 -54.0% for IYC 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYC charges 0.38% per year while QQQ charges 0.18%. On a $10,000 position that is $38 vs $18 annually, a gap of $20 per year that compounds over a long holding period. On income, IYC currently yields 0.51% against 0.41% for QQQ.
Holdings Overlap
IYC and QQQ share 15 holdings out of 246 unique holdings combined, representing a 16.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IYC | Weight in QQQ | Difference |
|---|---|---|---|
| AMZN | 14.27% | 4.26% | 10.01% |
| TSLA | 8.70% | 3.16% | 5.54% |
| WMT | 4.14% | 2.47% | 1.67% |
| COST | Pro | Pro | Pro |
| NFLX | Pro | Pro | Pro |
| BKNG | Pro | Pro | Pro |
| SBUX | Pro | Pro | Pro |
| MAR | Pro | Pro | Pro |
| ORLY | Pro | Pro | Pro |
| ROST | Pro | Pro | Pro |
See all 10 holdings IYC 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, IYC or QQQ?
IYC has an expense ratio of 0.38% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, IYC or QQQ?
Over the past year IYC returned +4.11% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (26 years), IYC annualized +7.81% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, IYC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.5% for IYC. Worst drawdown: IYC -54.0% vs QQQ -83.0%.
Should I hold both IYC and QQQ?
IYC and QQQ have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYC and QQQ?
IYC and QQQ share 15 common holdings with a 16.4% weight overlap. Combined, they hold 246 unique securities.
Which pays a higher dividend, IYC or QQQ?
IYC yields 0.51% while QQQ yields 0.41%, so IYC currently pays the higher dividend yield.
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