IYJ vs QQQ
IYJ vs QQQ
iShares US Industrials ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IYJ offers more diversification with 212 holdings.
Side-by-Side Comparison
| Metric | IYJ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $2.0B | $455.8B | |
| Dividend Yield | 0.70% | 0.41% | |
| Holdings | 215 | 108 | |
| YTD Return | +12.37% | +18.20% | |
| 1Y Return | +18.88% | +27.63% | |
| 3Y Return (annualized) | +17.06% | +25.54% | |
| 5Y Return (annualized) | +9.39% | +15.12% | |
| Volatility (annualized) | 18.6% | 30.6% | |
| Max Drawdown | -62.8% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Mar 10, 1999 |
IYJ vs QQQ Performance
iShares US Industrials ETF (IYJ) 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 IYJ returned +18.88% while QQQ returned +27.63%. Year to date, IYJ is up 12.37% versus a gain of 18.20% for QQQ.
Over three years, IYJ compounded at +17.06% per year against +25.54% for QQQ; over five years the annualized figures are +9.39% and +15.12% respectively. Across the full 26-year window we track, QQQ has the edge at +13.11% annualized vs +7.67%. 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 18.6% for IYJ. 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 -62.8% for IYJ 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYJ 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, IYJ currently yields 0.70% against 0.41% for QQQ.
Holdings Overlap
IYJ and QQQ share 11 holdings out of 304 unique holdings combined, representing a 3.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IYJ | Weight in QQQ | Difference |
|---|---|---|---|
| ADP | 1.12% | 0.44% | 0.68% |
| CSX | 1.06% | 0.41% | 0.65% |
| HONA | 0.88% | 0.30% | 0.58% |
| HON | Pro | Pro | Pro |
| PCAR | Pro | Pro | Pro |
| CTAS | Pro | Pro | Pro |
| RKLB | Pro | Pro | Pro |
| AXON | Pro | Pro | Pro |
| ODFL | Pro | Pro | Pro |
| PYPL | Pro | Pro | Pro |
See all 10 holdings IYJ 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, IYJ or QQQ?
IYJ 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, IYJ or QQQ?
Over the past year IYJ returned +18.88% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (26 years), IYJ annualized +7.67% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, IYJ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.6% for IYJ. Worst drawdown: IYJ -62.8% vs QQQ -83.0%.
Should I hold both IYJ and QQQ?
IYJ and QQQ have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYJ and QQQ?
IYJ and QQQ share 11 common holdings with a 3.0% weight overlap. Combined, they hold 304 unique securities.
Which pays a higher dividend, IYJ or QQQ?
IYJ yields 0.70% while QQQ yields 0.41%, so IYJ currently pays the higher dividend yield.
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