IBM vs. QQQ
Compare and contrast key facts about International Business Machines Corporation (IBM) and Invesco QQQ (QQQ).
QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IBM or QQQ.
Key characteristics
| IBM | QQQ | |
|---|---|---|
| YTD Return | 11.97% | 3.53% |
| 1Y Return | 50.32% | 33.74% |
| 3Y Return (Ann) | 18.03% | 8.40% |
| 5Y Return (Ann) | 11.50% | 18.54% |
| 10Y Return (Ann) | 4.19% | 18.17% |
| Sharpe Ratio | 2.58 | 2.08 |
| Daily Std Dev | 18.81% | 16.18% |
| Max Drawdown | -69.40% | -82.98% |
| Current Drawdown | -8.25% | -5.15% |
Correlation
The correlation between IBM 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
IBM vs. QQQ - Performance Comparison
In the year-to-date period, IBM achieves a 11.97% return, which is significantly higher than QQQ's 3.53% return. Over the past 10 years, IBM has underperformed QQQ with an annualized return of 4.19%, while QQQ has yielded a comparatively higher 18.17% 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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Risk-Adjusted Performance
IBM vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for International Business Machines Corporation (IBM) 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
IBM vs. QQQ - Dividend Comparison
IBM's dividend yield for the trailing twelve months is around 3.66%, more than QQQ's 0.62% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBM International Business Machines Corporation | 3.66% | 4.05% | 4.68% | 4.74% | 5.17% | 4.79% | 5.46% | 3.84% | 3.31% | 3.63% | 2.65% | 1.97% |
QQQ Invesco QQQ | 0.62% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
IBM vs. QQQ - Drawdown Comparison
The maximum IBM drawdown since its inception was -69.40%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for IBM and QQQ. For additional features, visit the drawdowns tool.
Volatility
IBM vs. QQQ - Volatility Comparison
International Business Machines Corporation (IBM) and Invesco QQQ (QQQ) have volatilities of 4.24% and 4.17%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.