IAI vs. QQQ
Compare and contrast key facts about iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) and Invesco QQQ (QQQ).
IAI and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IAI is a passively managed fund by iShares that tracks the performance of the DJ US Select / Investment Services. It was launched on May 1, 2006. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both IAI and QQQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IAI or QQQ.
Key characteristics
| IAI | QQQ | |
|---|---|---|
| YTD Return | 33.82% | 25.94% |
| 1Y Return | 57.81% | 38.64% |
| 3Y Return (Ann) | 10.23% | 9.61% |
| 5Y Return (Ann) | 19.12% | 21.45% |
| 10Y Return (Ann) | 15.35% | 18.54% |
| Sharpe Ratio | 3.59 | 2.22 |
| Sortino Ratio | 4.95 | 2.91 |
| Omega Ratio | 1.66 | 1.40 |
| Calmar Ratio | 3.39 | 2.86 |
| Martin Ratio | 27.46 | 10.42 |
| Ulcer Index | 2.12% | 3.72% |
| Daily Std Dev | 16.22% | 17.47% |
| Max Drawdown | -75.33% | -82.98% |
| Current Drawdown | -0.89% | 0.00% |
Correlation
The correlation between IAI and QQQ is 0.67, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
IAI vs. QQQ - Performance Comparison
In the year-to-date period, IAI achieves a 33.82% return, which is significantly higher than QQQ's 25.94% return. Over the past 10 years, IAI has underperformed QQQ with an annualized return of 15.35%, while QQQ has yielded a comparatively higher 18.54% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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IAI vs. QQQ - Expense Ratio Comparison
IAI has a 0.41% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
IAI vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) and Invesco QQQ (QQQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
IAI vs. QQQ - Dividend Comparison
IAI's dividend yield for the trailing twelve months is around 1.05%, more than QQQ's 0.59% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF | 1.05% | 1.80% | 2.14% | 1.31% | 1.55% | 1.52% | 1.58% | 1.37% | 1.48% | 1.31% | 1.13% | 1.13% |
QQQ Invesco QQQ | 0.59% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.02% |
Drawdowns
IAI vs. QQQ - Drawdown Comparison
The maximum IAI drawdown since its inception was -75.33%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for IAI and QQQ. For additional features, visit the drawdowns tool.
Volatility
IAI vs. QQQ - Volatility Comparison
iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) has a higher volatility of 8.64% compared to Invesco QQQ (QQQ) at 5.18%. This indicates that IAI's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.