IYY vs QQQ
IYY vs QQQ
iShares Dow Jones US ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IYY offers more diversification with 827 holdings.
Side-by-Side Comparison
| Metric | IYY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.18% | |
| AUM | $2.9B | $455.8B | |
| Dividend Yield | 0.87% | 0.41% | |
| Holdings | 970 | 108 | |
| YTD Return | +9.81% | +12.48% | |
| 1Y Return | +18.90% | +22.35% | |
| 3Y Return (annualized) | +18.94% | +22.30% | |
| 5Y Return (annualized) | +11.89% | +14.24% | |
| Volatility (annualized) | 15.7% | 30.6% | |
| Max Drawdown | -56.3% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Mar 10, 1999 |
IYY vs QQQ Performance
iShares Dow Jones US ETF (IYY) 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 IYY returned +18.90% while QQQ returned +22.35%. Year to date, IYY is up 9.81% versus a gain of 12.48% for QQQ.
Over three years, IYY compounded at +18.94% per year against +22.30% for QQQ; over five years the annualized figures are +11.89% and +14.24% respectively. Across the full 26-year window we track, QQQ has the edge at +12.91% annualized vs +6.90%. 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 15.7% for IYY. 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 -56.3% for IYY 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYY charges 0.20% per year while QQQ charges 0.18%. On a $10,000 position that is $20 vs $18 annually, a gap of $2 per year that compounds over a long holding period. On income, IYY currently yields 0.87% against 0.41% for QQQ.
Holdings Overlap
IYY and QQQ share 94 holdings out of 836 unique holdings combined, representing a 50.7% weight overlap.
High overlap means holding both may not provide much additional diversification.
Top Shared Holdings
| Stock | Weight in IYY | Weight in QQQ | Difference |
|---|---|---|---|
| NVDA | 6.79% | 7.88% | 1.09% |
| AAPL | 6.58% | 7.46% | 0.88% |
| MSFT | 4.12% | 4.65% | 0.53% |
| AMZN | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
See all 10 holdings IYY 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, IYY or QQQ?
IYY has an expense ratio of 0.20% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, IYY or QQQ?
Over the past year IYY returned +18.90% vs +22.35% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (26 years), IYY annualized +6.90% vs +12.91% for QQQ. Past performance does not guarantee future results.
Which is riskier, IYY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.7% for IYY. Worst drawdown: IYY -56.3% vs QQQ -83.0%.
Should I hold both IYY and QQQ?
IYY and QQQ have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYY and QQQ?
IYY and QQQ share 94 common holdings with a 50.7% weight overlap. Combined, they hold 836 unique securities.
Which pays a higher dividend, IYY or QQQ?
IYY yields 0.87% while QQQ yields 0.41%, so IYY currently pays the higher dividend yield.
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