QQQ vs USIG

Quick Verdict

USIG has a lower expense ratio. QQQ delivered stronger 1-year returns. USIG offers more diversification with 9966 holdings.

Lower Fees: USIGHigher Returns: QQQMore Diversified: USIG

Side-by-Side Comparison

MetricQQQUSIGWinner
Expense Ratio0.18%0.04%
AUM$455.8B$17.3B
Dividend Yield0.41%4.72%
Holdings10811,462
YTD Return+17.27%-0.21%
1Y Return+28.64%+2.13%
3Y Return (annualized)+24.88%+5.34%
5Y Return (annualized)+14.86%+0.06%
Volatility (annualized)30.6%7.4%
Max Drawdown-83.0%-21.6%
Fund FamilyInvesco (US)iShares by BlackRock (US)
CategoryEquityFixed Income
InceptionMar 10, 1999Jan 5, 2007

QQQ vs USIG Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares Broad USD Investment Grade Corporate Bond ETF (USIG) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +28.64% while USIG returned +2.13%. Year to date, QQQ is up 17.27% versus a loss of 0.21% for USIG.

Over three years, QQQ compounded at +24.88% per year against +5.34% for USIG; over five years the annualized figures are +14.86% and +0.06% respectively. Across the full 8-year window we track, QQQ has the edge at +13.08% annualized vs +1.85%. 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 7.4% for USIG. 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 -83.0% for QQQ and -21.6% for USIG. 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while USIG charges 0.04%. On a $10,000 position that is $18 vs $4 annually, a gap of $14 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.72% for USIG.

Holdings Overlap

0.0%overlap

QQQ and USIG share 2 holdings out of 10067 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in QQQWeight in USIGDifference
LRCX1.82%0.00%1.82%
KDP0.19%0.01%0.18%

Frequently Asked Questions

Which is cheaper, QQQ or USIG?

QQQ has an expense ratio of 0.18% while USIG charges 0.04%. USIG is the cheaper option. On a $10,000 investment, that is $14 per year of difference.

Which performed better, QQQ or USIG?

Over the past year QQQ returned +28.64% vs +2.13% for USIG, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), QQQ annualized +13.08% vs +1.85% for USIG. Past performance does not guarantee future results.

Which is riskier, QQQ or USIG?

QQQ has been the more volatile fund at 30.6% annualized versus 7.4% for USIG. Worst drawdown: QQQ -83.0% vs USIG -21.6%.

Should I hold both QQQ and USIG?

QQQ and USIG have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and USIG?

QQQ and USIG share 2 common holdings with a 0.0% weight overlap. Combined, they hold 10067 unique securities.

Which pays a higher dividend, QQQ or USIG?

QQQ yields 0.41% while USIG yields 4.72%, so USIG currently pays the higher dividend yield.

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