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 | 3.35% | 35.14% |
| 1Y Return | 21.15% | 32.67% |
| 5Y Return (Ann) | 4.41% | 14.85% |
| 10Y Return (Ann) | 1.76% | 17.29% |
| Sharpe Ratio | 1.07 | 1.26 |
| Daily Std Dev | 18.80% | 22.85% |
| Max Drawdown | -69.40% | -82.98% |
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.
IBM vs. QQQ - Performance Comparison
In the year-to-date period, IBM achieves a 3.35% return, which is significantly lower than QQQ's 35.14% return. Over the past 10 years, IBM has underperformed QQQ with an annualized return of 1.76%, while QQQ has yielded a comparatively higher 17.29% 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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IBM vs. QQQ - Dividend Comparison
IBM's dividend yield for the trailing twelve months is around 4.72%, more than QQQ's 0.60% yield.
| TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBM International Business Machines Corporation | 4.72% | 4.85% | 5.16% | 5.91% | 5.77% | 6.89% | 5.07% | 4.53% | 5.16% | 3.89% | 2.96% | 2.64% |
QQQ Invesco QQQ | 0.60% | 0.81% | 0.43% | 0.56% | 0.76% | 0.94% | 0.87% | 1.11% | 1.05% | 1.51% | 1.10% | 1.39% |
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.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
|---|---|---|---|---|---|
IBM International Business Machines Corporation | 1.07 | ||||
QQQ Invesco QQQ | 1.26 |
IBM vs. QQQ - Drawdown Comparison
The maximum IBM drawdown for the period was -17.61%, roughly equal to the maximum QQQ drawdown of -22.49%. The drawdown chart below compares losses from any high point along the way for IBM and QQQ
IBM vs. QQQ - Volatility Comparison
International Business Machines Corporation (IBM) has a higher volatility of 4.63% compared to Invesco QQQ (QQQ) at 4.10%. This indicates that IBM'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.