IYT vs QQQ
iShares US Transportation ETF vs Invesco QQQ Trust, Series 1
Which is better, IYT or QQQ?
Mid Cap Blend 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 72.4%.
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 | IYT | QQQ |
|---|---|---|
| Expense Ratio | 0.37% | 0.18%Best |
| AUM | $2.0B | $506.1B |
| Dividend Yield | 0.96% | 0.42% |
| Holdings | 48 | 321 |
| YTD Return | +5.96% | +19.30%Best |
| 1Y Return | +12.56% | +22.47%Best |
| 3Y Return (annualized) | +11.94% | +26.18%Best |
| 5Y Return (annualized) | +5.46% | +15.42%Best |
| Volatility (annualized) | 20.1% | 18.1%Best |
| Max Drawdown | -60.7% | -53.5%Best |
| $10,000 over 5 years | $13,045 | $20,484Best |
| Top 10 Weight | 72.4% | 46.7%Best |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Growth |
| Inception | Oct 6, 2003 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Oct 10, 2003 to Oct 14, 2026 (23 years).
IYT 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 23 years both funds cover.
IYT vs QQQ Performance
iShares US Transportation ETF (IYT) 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 IYT returned +12.56% while QQQ returned +22.47%. Year to date, IYT is up 5.96% versus a gain of 19.30% for QQQ.
Over three years, IYT compounded at +11.94% per year against +26.18% for QQQ; over five years the annualized figures are +5.46% and +15.42% respectively. Across the full 23-year window we track, QQQ has the edge at +14.27% annualized vs +8.57%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYT has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 18.1% 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 -60.7% for IYT and -53.5% 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYT 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, IYT currently yields 0.96% against 0.42% for QQQ.
Holdings Overlap
13.8% of IYT's money is in holdings QQQ also owns. 0.5% of QQQ's money is in holdings IYT also owns.
IYT and QQQ share little of their money.
2 positions in common, counted across the 45 positions we hold weights for in IYT and 101 in QQQ, against full books of 48 and 321.
What only one of them owns
Measured across the 45 and 101 positions we hold weights for.
QQQ holds 91 positions IYT does not, 95.8% 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 IYT 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, IYT or QQQ?
IYT 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, IYT or QQQ?
Over the past year IYT returned +12.56% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), IYT annualized +8.57% vs +14.27% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYT or QQQ?
IYT has been the more volatile fund at 20.1% annualized versus 18.1% for QQQ. Worst drawdown: IYT -60.7% vs QQQ -53.5%.
Should I hold both IYT and QQQ?
IYT and QQQ have a monthly-return correlation of 0.72, 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 IYT and QQQ?
13.8% of IYT's money is in holdings QQQ also owns. 0.5% of QQQ's is in holdings IYT also owns. They hold 2 positions in common, counted across the 45 positions we hold weights for in IYT and 101 in QQQ.
Which pays a higher dividend, IYT or QQQ?
IYT yields 0.96% while QQQ yields 0.42%, so IYT currently pays the higher dividend yield.
Is QQQ better than IYT?
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 72.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.