IYJ vs QQQ

IYJ vs QQQ

Which is better, IYJ or QQQ?

Large Cap Blend against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. IYJ is less concentrated, with 36.6% of the fund in its ten largest positions against 46.7%.

Lower Fees: QQQHigher Returns: QQQLess Concentrated: IYJ

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

MetricIYJQQQ
Expense Ratio0.37%0.18%Best
AUM$1.9B$506.1B
Dividend Yield0.69%0.42%
Holdings215321
YTD Return+3.79%+19.30%Best
1Y Return+6.96%+22.47%Best
3Y Return (annualized)+16.02%+26.18%Best
5Y Return (annualized)+7.98%+15.42%Best
Volatility (annualized)18.6%Best21.6%
Max Drawdown-62.8%Best-70.4%
$10,000 over 5 years$14,680$20,484Best
Top 10 Weight36.6%Best46.7%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Growth
InceptionJun 12, 2000Mar 10, 1999

Volatility and max drawdown are measured over the window both funds cover: Jan 2, 2001 to Oct 14, 2026 (25.8 years).

IYJ 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 25.8 years both funds cover.

IYJ vs QQQ Performance

iShares US Industrials ETF (IYJ) 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 IYJ returned +6.96% while QQQ returned +22.47%. Year to date, IYJ is up 3.79% versus a gain of 19.30% for QQQ.

Over three years, IYJ compounded at +16.02% per year against +26.18% for QQQ; over five years the annualized figures are +7.98% and +15.42% respectively. Across the full 26-year window we track, QQQ has the edge at +10.81% annualized vs +7.28%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 21.6% compared with 18.6% for IYJ. 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 -62.8% for IYJ and -70.4% 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 0.78. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IYJ charges 0.37% per year while QQQ charges 0.18%. On a $10,000 position that is $37 vs $18 annually, a gap of $19 per year that compounds over a long holding period. On income, IYJ currently yields 0.69% against 0.42% for QQQ.

Holdings Overlap

IYJ already in QQQ7.7%
QQQ already in IYJ2.6%

7.7% of IYJ's money is in holdings QQQ also owns. 2.6% of QQQ's money is in holdings IYJ also owns.

IYJ and QQQ share little of their money.

11 positions in common, counted across the 215 positions we hold weights for in IYJ and 101 in QQQ, against full books of 215 and 321.

What only one of them owns

Our book lists 82 positions for QQQ that do not appear in our book for IYJ (93.6% of the fund), and 196 for IYJ that do not appear in QQQ (87.4%).

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.

Top Shared Holdings

StockWeight in IYJWeight in QQQDifference
ADPAutomatic Data Processing, Inc.1.32%0.43%0.89%
CSXCsx Corp.1.08%0.36%0.72%
CTASCintas Corp.0.83%0.33%0.50%
HONHoneywell International Inc0.85%0.28%0.57%
PCARPaccar Inc.0.71%0.24%0.47%
HONAHoneywell Aerospace Inc0.61%0.21%0.40%
PYPLPaypal Holdings Inc0.57%0.19%0.38%
RKLBRocket Lab Corp0.49%0.17%0.32%
ODFLOld Dominion Freig0.42%0.15%0.27%
PAYXPaychex, Inc.0.41%0.15%0.26%

You are not choosing between two funds in isolation.

Whichever of IYJ and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

IYJQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IYJ or QQQ?

IYJ has an expense ratio of 0.37% while QQQ charges 0.18%. QQQ is the cheaper option, by $19 a year on a $10,000 investment.

Which performed better, IYJ or QQQ?

Over the past year IYJ returned +6.96% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (26 years), IYJ annualized +7.28% vs +10.81% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IYJ or QQQ?

QQQ has been the more volatile fund at 21.6% annualized versus 18.6% for IYJ. Worst drawdown: IYJ -62.8% vs QQQ -70.4%.

Should I hold both IYJ and QQQ?

IYJ and QQQ have a monthly-return correlation of 0.78, 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 IYJ and QQQ?

7.7% of IYJ's money is in holdings QQQ also owns. 2.6% of QQQ's is in holdings IYJ also owns. They hold 11 positions in common, counted across the 215 positions we hold weights for in IYJ and 101 in QQQ.

Which pays a higher dividend, IYJ or QQQ?

IYJ yields 0.69% while QQQ yields 0.42%, so IYJ currently pays the higher dividend yield.

Is QQQ better than IYJ?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. IYJ is less concentrated, with 36.6% 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.