IYW vs QQQ
IYW vs QQQ
iShares US Technology ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. IYW delivered stronger 1-year returns. IYW offers more diversification with 150 holdings.
Side-by-Side Comparison
| Metric | IYW | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $23.3B | $455.8B | |
| Dividend Yield | 0.10% | 0.41% | |
| Holdings | 153 | 108 | |
| YTD Return | +25.45% | +16.83% | |
| 1Y Return | +38.04% | +26.58% | |
| 3Y Return (annualized) | +32.16% | +24.70% | |
| 5Y Return (annualized) | +19.46% | +14.88% | |
| Volatility (annualized) | 24.6% | 30.6% | |
| Max Drawdown | -81.9% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Mar 10, 1999 |
IYW vs QQQ Performance
iShares US Technology ETF (IYW) 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 IYW returned +38.04% while QQQ returned +26.58%. Year to date, IYW is up 25.45% versus a gain of 16.83% for QQQ.
Over three years, IYW compounded at +32.16% per year against +24.70% for QQQ; over five years the annualized figures are +19.46% and +14.88% respectively. Across the full 26-year window we track, QQQ has the edge at +13.06% annualized vs +8.87%. 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 24.6% for IYW. 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 -81.9% for IYW 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IYW 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, IYW currently yields 0.10% against 0.41% for QQQ.
Holdings Overlap
IYW and QQQ share 39 holdings out of 214 unique holdings combined, representing a 60.8% weight overlap.
High overlap means holding both may not provide much additional diversification.
Top Shared Holdings
| Stock | Weight in IYW | Weight in QQQ | Difference |
|---|---|---|---|
| NVDA | 12.80% | 7.88% | 4.92% |
| AAPL | 12.81% | 7.46% | 5.35% |
| MSFT | 8.56% | 4.65% | 3.91% |
| GOOGL | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| INTC | Pro | Pro | Pro |
See all 10 holdings IYW 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, IYW or QQQ?
IYW 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, IYW or QQQ?
Over the past year IYW returned +38.04% vs +26.58% for QQQ, so IYW leads on 1-year performance. Over the longest common window we track (26 years), IYW annualized +8.87% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, IYW or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 24.6% for IYW. Worst drawdown: IYW -81.9% vs QQQ -83.0%.
Should I hold both IYW and QQQ?
IYW and QQQ have a monthly-return correlation of 0.98, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between IYW and QQQ?
IYW and QQQ share 39 common holdings with a 60.8% weight overlap. Combined, they hold 214 unique securities.
Which pays a higher dividend, IYW or QQQ?
IYW yields 0.10% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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