IBB vs. QQQ
Compare and contrast key facts about iShares Nasdaq Biotechnology ETF (IBB) and Invesco QQQ (QQQ).
IBB and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IBB is a passively managed fund by iShares that tracks the performance of the NASDAQ Biotechnology Index. It was launched on Feb 5, 2001. 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 IBB 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: IBB or QQQ.
Performance
IBB vs. QQQ - Performance Comparison
Returns By Period
In the year-to-date period, IBB achieves a -1.84% return, which is significantly lower than QQQ's 22.63% return. Over the past 10 years, IBB has underperformed QQQ with an annualized return of 3.30%, while QQQ has yielded a comparatively higher 18.02% annualized return.
IBB
-1.84%
-8.82%
-3.12%
13.02%
3.43%
3.30%
QQQ
22.63%
1.12%
10.25%
30.41%
20.71%
18.02%
Key characteristics
| IBB | QQQ | |
|---|---|---|
| Sharpe Ratio | 0.78 | 1.75 |
| Sortino Ratio | 1.18 | 2.34 |
| Omega Ratio | 1.14 | 1.32 |
| Calmar Ratio | 0.43 | 2.25 |
| Martin Ratio | 3.66 | 8.17 |
| Ulcer Index | 3.83% | 3.73% |
| Daily Std Dev | 17.93% | 17.44% |
| Max Drawdown | -62.85% | -82.98% |
| Current Drawdown | -23.79% | -2.75% |
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IBB vs. QQQ - Expense Ratio Comparison
IBB has a 0.47% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Correlation
The correlation between IBB and QQQ is 0.69, 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.
Risk-Adjusted Performance
IBB vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Nasdaq Biotechnology ETF (IBB) 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
IBB vs. QQQ - Dividend Comparison
IBB's dividend yield for the trailing twelve months is around 0.34%, less than QQQ's 0.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBB iShares Nasdaq Biotechnology ETF | 0.34% | 0.26% | 0.31% | 0.21% | 0.20% | 0.17% | 0.19% | 0.30% | 0.19% | 0.03% | 0.15% | 0.03% |
QQQ Invesco QQQ | 0.61% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.02% |
Drawdowns
IBB vs. QQQ - Drawdown Comparison
The maximum IBB drawdown since its inception was -62.85%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for IBB and QQQ. For additional features, visit the drawdowns tool.
Volatility
IBB vs. QQQ - Volatility Comparison
iShares Nasdaq Biotechnology ETF (IBB) has a higher volatility of 7.05% compared to Invesco QQQ (QQQ) at 5.62%. This indicates that IBB'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.