LQDH vs QQQ
LQDH vs QQQ
iShares Interest Rate Hedged Corporate Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | LQDH | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.24% | 0.18% | |
| AUM | $526M | $455.8B | |
| Dividend Yield | 5.96% | 0.41% | |
| Holdings | 185 | 108 | |
| YTD Return | +1.87% | +17.27% | |
| 1Y Return | +5.61% | +28.64% | |
| 3Y Return (annualized) | +7.03% | +24.88% | |
| 5Y Return (annualized) | +5.18% | +14.86% | |
| Volatility (annualized) | 5.3% | 30.6% | |
| Max Drawdown | -28.2% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 27, 2014 | Mar 10, 1999 |
LQDH vs QQQ Performance
iShares Interest Rate Hedged Corporate Bond ETF (LQDH) 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 LQDH returned +5.61% while QQQ returned +28.64%. Year to date, LQDH is up 1.87% versus a gain of 17.27% for QQQ.
Over three years, LQDH compounded at +7.03% per year against +24.88% for QQQ; over five years the annualized figures are +5.18% and +14.86% respectively. Across the full 12-year window we track, QQQ has the edge at +13.08% annualized vs +1.77%. 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 5.3% for LQDH. 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 -28.2% for LQDH 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
LQDH charges 0.24% per year while QQQ charges 0.18%. On a $10,000 position that is $24 vs $18 annually, a gap of $6 per year that compounds over a long holding period. On income, LQDH currently yields 5.96% against 0.41% for QQQ.
Holdings Overlap
LQDH and QQQ share 0 holdings out of 105 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LQDH or QQQ?
LQDH has an expense ratio of 0.24% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, LQDH or QQQ?
Over the past year LQDH returned +5.61% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), LQDH annualized +1.77% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, LQDH or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.3% for LQDH. Worst drawdown: LQDH -28.2% vs QQQ -83.0%.
Should I hold both LQDH and QQQ?
LQDH 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 LQDH and QQQ?
LQDH and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, LQDH or QQQ?
LQDH yields 5.96% while QQQ yields 0.41%, so LQDH currently pays the higher dividend yield.
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