GOVZ vs QQQ
iShares 25+ Year Treasury STRIPS Bond ETF vs Invesco QQQ Trust, Series 1
Which is better, GOVZ or QQQ?
Long Term Government Bond against Large Cap Growth.
GOVZ has a lower expense ratio. GOVZ led over 1Y and 3Y, QQQ over 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | GOVZ | QQQ |
|---|---|---|
| Expense Ratio | 0.10%Best | 0.18% |
| AUM | $365M | $506.1B |
| Dividend Yield | 5.62% | 0.42% |
| Holdings | 22 | 321 |
| YTD Return | +244.26%Best | +19.30% |
| 1Y Return | +220.45%Best | +22.47% |
| 3Y Return (annualized) | +51.91%Best | +26.18% |
| 5Y Return (annualized) | +11.67% | +15.42%Best |
| Volatility (annualized) | 124.6% | 20.0%Best |
| Max Drawdown | -59.6% | -35.1%Best |
| $10,000 over 5 years | $17,365 | $20,484Best |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | Long Term Government Bond | Large Cap Growth |
| Inception | Sep 22, 2020 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 24, 2020 to Oct 14, 2026 (6.1 years).
GOVZ vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.1 years both funds cover.
GOVZ vs QQQ Performance
iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year GOVZ returned +220.45% while QQQ returned +22.47%. Year to date, GOVZ is up 244.26% versus a gain of 19.30% for QQQ.
Over three years, GOVZ compounded at +51.91% per year against +26.18% for QQQ; over five years the annualized figures are +11.67% and +15.42% respectively. Across the full 6-year window we track, QQQ has the edge at +18.82% annualized vs +6.97%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GOVZ has been the more volatile fund, with annualized monthly volatility of 124.6% compared with 20.0% for QQQ. 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 -59.6% for GOVZ and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.27. They move largely independently of each other.
Fees and Cost Over Time
GOVZ charges 0.10% per year while QQQ charges 0.18%. On a $10,000 position that is $10 vs $18 annually, a gap of $8 per year that compounds over a long holding period. On income, GOVZ currently yields 5.62% against 0.42% for QQQ.
Holdings Overlap
We hold position weights for 17 holdings in GOVZ and 101 in QQQ, totalling 81.7% and 99.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 17 positions we hold weights for in GOVZ and 101 in QQQ, against full books of 22 and 321.
You are not choosing between two funds in isolation.
Whichever of GOVZ and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, GOVZ or QQQ?
GOVZ has an expense ratio of 0.10% while QQQ charges 0.18%. GOVZ is the cheaper option, by $8 a year on a $10,000 investment.
Which performed better, GOVZ or QQQ?
Over the past year GOVZ returned +220.45% vs +22.47% for QQQ, so GOVZ leads on 1-year performance. Over the longest common window we track (6 years), GOVZ annualized +6.97% vs +18.82% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, GOVZ or QQQ?
GOVZ has been the more volatile fund at 124.6% annualized versus 20.0% for QQQ. Worst drawdown: GOVZ -59.6% vs QQQ -35.1%.
Should I hold both GOVZ and QQQ?
GOVZ and QQQ have a monthly-return correlation of 0.27, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, GOVZ or QQQ?
GOVZ yields 5.62% while QQQ yields 0.42%, so GOVZ currently pays the higher dividend yield.
Is QQQ better than GOVZ?
GOVZ has a lower expense ratio. GOVZ led over 1Y and 3Y, QQQ over 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.