IBBQ vs QQQ
Invesco Nasdaq Biotechnology ETF vs Invesco QQQ Trust, Series 1
Which is better, IBBQ or QQQ?
Each has led over a different period.
QQQ has a lower expense ratio. IBBQ led over 1Y, QQQ over 3Y, 5Y and the full window. IBBQ is less concentrated, with 44.4% of the fund in its ten largest positions against 46.7%.
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 | IBBQ | QQQ |
|---|---|---|
| Expense Ratio | 0.19% | 0.18%Best |
| AUM | $108M | $506.1B |
| Dividend Yield | 1.11% | 0.42% |
| Holdings | 260 | 321 |
| YTD Return | +20.66%Best | +19.30% |
| 1Y Return | +35.34%Best | +22.47% |
| 3Y Return (annualized) | +20.91% | +26.18%Best |
| 5Y Return (annualized) | +7.41% | +15.42%Best |
| Volatility (annualized) | 17.3%Best | 20.5% |
| Max Drawdown | -37.9% | -35.1%Best |
| $10,000 over 5 years | $14,296 | $20,484Best |
| Top 10 Weight | 44.4%Best | 46.7% |
| Fund Family | Invesco (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Jun 11, 2021 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Jun 11, 2021 to Oct 14, 2026 (5.3 years).
IBBQ 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 5.3 years both funds cover.
IBBQ vs QQQ Performance
Invesco Nasdaq Biotechnology ETF (IBBQ) is an ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year IBBQ returned +35.34% while QQQ returned +22.47%. Year to date, IBBQ is up 20.66% versus a gain of 19.30% for QQQ.
Over three years, IBBQ compounded at +20.91% per year against +26.18% for QQQ; over five years the annualized figures are +7.41% and +15.42% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.5% compared with 17.3% for IBBQ. 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 -37.9% for IBBQ 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 0.49. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IBBQ charges 0.19% per year while QQQ charges 0.18%. On a $10,000 position that is $19 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, IBBQ currently yields 1.11% against 0.42% for QQQ.
Holdings Overlap
31.3% of IBBQ's money is in holdings QQQ also owns. 2.7% of QQQ's money is in holdings IBBQ also owns.
The two portfolios partly overlap.
5 positions in common, counted across the 252 positions we hold weights for in IBBQ and 101 in QQQ, against full books of 260 and 321.
What only one of them owns
Our book lists 88 positions for QQQ that do not appear in our book for IBBQ (93.5% of the fund), and 214 for IBBQ that do not appear in QQQ (58.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
31.3% of IBBQ is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IBBQ or QQQ?
IBBQ has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, IBBQ or QQQ?
Over the past year IBBQ returned +35.34% vs +22.47% for QQQ, so IBBQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBBQ or QQQ?
QQQ has been the more volatile fund at 20.5% annualized versus 17.3% for IBBQ. Worst drawdown: IBBQ -37.9% vs QQQ -35.1%.
Should I hold both IBBQ and QQQ?
IBBQ and QQQ have a monthly-return correlation of 0.49, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IBBQ and QQQ?
31.3% of IBBQ's money is in holdings QQQ also owns. 2.7% of QQQ's is in holdings IBBQ also owns. They hold 5 positions in common, counted across the 252 positions we hold weights for in IBBQ and 101 in QQQ.
Which pays a higher dividend, IBBQ or QQQ?
IBBQ yields 1.11% while QQQ yields 0.42%, so IBBQ currently pays the higher dividend yield.
Is QQQ better than IBBQ?
QQQ has a lower expense ratio. IBBQ led over 1Y, QQQ over 3Y, 5Y and the full window. IBBQ is less concentrated, with 44.4% of the fund in its ten largest positions against 46.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.