IHE vs. QQQ
Compare and contrast key facts about iShares U.S. Pharmaceuticals ETF (IHE) and Invesco QQQ (QQQ).
IHE and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IHE is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Select Pharmaceuticals Index. It was launched on May 5, 2006. 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 IHE 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: IHE or QQQ.
Key characteristics
| IHE | QQQ | |
|---|---|---|
| YTD Return | 6.78% | 9.03% |
| 1Y Return | 14.77% | 37.37% |
| 3Y Return (Ann) | 7.34% | 11.70% |
| 5Y Return (Ann) | 10.97% | 20.11% |
| 10Y Return (Ann) | 9.13% | 18.68% |
| Sharpe Ratio | 1.06 | 2.35 |
| Daily Std Dev | 13.52% | 16.21% |
| Max Drawdown | -35.30% | -82.98% |
| Current Drawdown | -5.12% | -0.10% |
Correlation
The correlation between IHE and QQQ is 0.63, 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
IHE vs. QQQ - Performance Comparison
In the year-to-date period, IHE achieves a 6.78% return, which is significantly lower than QQQ's 9.03% return. Over the past 10 years, IHE has underperformed QQQ with an annualized return of 9.13%, while QQQ has yielded a comparatively higher 18.68% 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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IHE vs. QQQ - Expense Ratio Comparison
IHE has a 0.42% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
IHE vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Pharmaceuticals ETF (IHE) 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
IHE vs. QQQ - Dividend Comparison
IHE's dividend yield for the trailing twelve months is around 3.30%, more than QQQ's 0.59% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IHE iShares U.S. Pharmaceuticals ETF | 3.30% | 4.16% | 6.02% | 4.48% | 3.57% | 4.19% | 3.76% | 4.08% | 2.75% | 5.78% | 3.60% | 3.19% |
QQQ Invesco QQQ | 0.59% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
IHE vs. QQQ - Drawdown Comparison
The maximum IHE drawdown since its inception was -35.30%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for IHE and QQQ. For additional features, visit the drawdowns tool.
Volatility
IHE vs. QQQ - Volatility Comparison
The current volatility for iShares U.S. Pharmaceuticals ETF (IHE) is 3.21%, while Invesco QQQ (QQQ) has a volatility of 4.93%. This indicates that IHE 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.