IBHF vs QQQ
iShares iBonds 2026 Term High Yield and Income ETF vs Invesco QQQ Trust, Series 1
Which is better, IBHF or QQQ?
High Yield Bond against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.7% of the fund in its ten largest positions against 62.4%.
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 | IBHF | QQQ |
|---|---|---|
| Expense Ratio | 0.35% | 0.18%Best |
| AUM | $643M | $506.1B |
| Dividend Yield | 5.77% | 0.42% |
| Holdings | 82 | 321 |
| YTD Return | -2.60% | +19.30%Best |
| 1Y Return | -2.50% | +22.47%Best |
| 3Y Return (annualized) | +5.50% | +26.18%Best |
| 5Y Return (annualized) | +2.93% | +15.42%Best |
| Volatility (annualized) | 5.0%Best | 19.8% |
| Max Drawdown | -11.2%Best | -35.1% |
| $10,000 over 5 years | $11,553 | $20,484Best |
| Top 10 Weight | 62.4% | 46.7%Best |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Growth |
| Inception | Nov 10, 2020 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Nov 12, 2020 to Oct 14, 2026 (5.9 years).
IBHF 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 5.9 years both funds cover.
IBHF vs QQQ Performance
iShares iBonds 2026 Term High Yield and Income ETF (IBHF) 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 IBHF returned -2.50% while QQQ returned +22.47%. Year to date, IBHF is down 2.60% versus a gain of 19.30% for QQQ.
Over three years, IBHF compounded at +5.50% per year against +26.18% for QQQ; over five years the annualized figures are +2.93% and +15.42% respectively. Across the full 6-year window we track, QQQ has the edge at +17.62% annualized vs +3.62%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.8% compared with 5.0% for IBHF. 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 -11.2% for IBHF 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 0.64. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IBHF charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, IBHF currently yields 5.77% against 0.42% for QQQ.
Holdings Overlap
We hold position weights for 78 holdings in IBHF and 101 in QQQ, totalling 98.0% 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 78 positions we hold weights for in IBHF and 101 in QQQ, against full books of 82 and 321.
What only one of them owns
Measured across the 78 and 101 positions we hold weights for.
QQQ holds 93 positions IBHF does not, 96.3% of the fund.
Largest: NVDA 8.33%, AAPL 7.35%, MSFT 5.76%, MU 5.02%, AMD 4.17%
You are not choosing between two funds in isolation.
Whichever of IBHF 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, IBHF or QQQ?
IBHF has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, IBHF or QQQ?
Over the past year IBHF returned -2.50% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), IBHF annualized +3.62% vs +17.62% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBHF or QQQ?
QQQ has been the more volatile fund at 19.8% annualized versus 5.0% for IBHF. Worst drawdown: IBHF -11.2% vs QQQ -35.1%.
Should I hold both IBHF and QQQ?
IBHF and QQQ have a monthly-return correlation of 0.64, 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, IBHF or QQQ?
IBHF yields 5.77% while QQQ yields 0.42%, so IBHF currently pays the higher dividend yield.
Is QQQ better than IBHF?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.7% of the fund in its ten largest positions against 62.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.