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IBM vs. QQQ

Last updated Sep 30, 2023

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


IBMQQQ
YTD Return3.35%35.14%
1Y Return21.15%32.67%
5Y Return (Ann)4.41%14.85%
10Y Return (Ann)1.76%17.29%
Sharpe Ratio1.071.26
Daily Std Dev18.80%22.85%
Max Drawdown-69.40%-82.98%

Correlation

0.57
-1.001.00

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.


-5.00%0.00%5.00%10.00%15.00%20.00%MayJuneJulyAugustSeptember
8.93%
12.22%
IBM
QQQ

Compare stocks, funds, or ETFs


International Business Machines Corporation

Invesco QQQ

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.


TTM20222021202020192018201720162015201420132012
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 ratioSortino ratioOmega ratioCalmar ratioUlcer Index
IBM
International Business Machines Corporation
1.07
QQQ
Invesco QQQ
1.26

IBM vs. QQQ - Sharpe Ratio Comparison

The current IBM Sharpe Ratio is 1.07, which roughly equals the QQQ Sharpe Ratio of 1.26. The chart below compares the 12-month rolling Sharpe Ratio of IBM and QQQ.


Rolling 12-month Sharpe Ratio-0.500.000.501.001.50MayJuneJulyAugustSeptember
1.07
1.26
IBM
QQQ

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


-20.00%-15.00%-10.00%-5.00%0.00%MayJuneJulyAugustSeptember
-6.36%
-10.16%
IBM
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.


2.50%3.00%3.50%4.00%4.50%5.00%5.50%6.00%MayJuneJulyAugustSeptember
4.63%
4.10%
IBM
QQQ