IBBQ vs. QQQ
Compare and contrast key facts about Invesco Nasdaq Biotechnology ETF (IBBQ) and Invesco QQQ (QQQ).
IBBQ and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IBBQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ / Biotechnology. It was launched on Jun 11, 2021. 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 IBBQ 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: IBBQ or QQQ.
Key characteristics
| IBBQ | QQQ | |
|---|---|---|
| YTD Return | 13.13% | 18.37% |
| 1Y Return | 23.82% | 33.32% |
| 3Y Return (Ann) | -1.61% | 10.45% |
| Sharpe Ratio | 1.31 | 1.76 |
| Daily Std Dev | 17.71% | 17.85% |
| Max Drawdown | -37.94% | -82.98% |
| Current Drawdown | -7.93% | -3.90% |
Correlation
The correlation between IBBQ and QQQ is 0.57, 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
IBBQ vs. QQQ - Performance Comparison
In the year-to-date period, IBBQ achieves a 13.13% return, which is significantly lower than QQQ's 18.37% 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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IBBQ vs. QQQ - Expense Ratio Comparison
IBBQ has a 0.00% expense ratio, which is lower than QQQ's 0.20% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
IBBQ vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Nasdaq Biotechnology ETF (IBBQ) 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
IBBQ vs. QQQ - Dividend Comparison
IBBQ's dividend yield for the trailing twelve months is around 0.59%, more than QQQ's 0.49% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBBQ Invesco Nasdaq Biotechnology ETF | 0.59% | 0.81% | 0.76% | 0.63% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
QQQ Invesco QQQ | 0.49% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
IBBQ vs. QQQ - Drawdown Comparison
The maximum IBBQ drawdown since its inception was -37.94%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for IBBQ and QQQ. For additional features, visit the drawdowns tool.
Volatility
IBBQ vs. QQQ - Volatility Comparison
The current volatility for Invesco Nasdaq Biotechnology ETF (IBBQ) is 3.74%, while Invesco QQQ (QQQ) has a volatility of 6.44%. This indicates that IBBQ experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.