ILCG vs. QQQ

Last updated Jun 10, 2026

ILCG (iShares Morningstar Growth ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - ILCG is a Large Cap Growth Equities fund tracking the Morningstar US Large-Mid Cap Broad Growth Index Gross, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, ILCG returned 17.76%/yr vs 21.45%/yr for QQQ. With a 0.95 correlation, they move nearly in lockstep. ILCG charges 0.04%/yr vs 0.18%/yr for QQQ.

Performance

ILCG vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Morningstar Growth ETF (ILCG) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ILCG achieves a 9.80% return, which is significantly lower than QQQ's 15.37% return. Over the past 10 years, ILCG has underperformed QQQ with an annualized return of 17.76%, while QQQ has yielded a comparatively higher 21.45% annualized return.

ILCG

• 1D: -0.61%
• 1M: -0.60%
• YTD: 9.80%
• 6M: 9.22%
• 1Y: 23.18%
• 3Y*: 24.83%
• 5Y*: 13.63%
• 10Y*: 17.76%

QQQ

• 1D: -1.15%
• 1M: -0.48%
• YTD: 15.37%
• 6M: 13.53%
• 1Y: 34.02%
• 3Y*: 26.66%
• 5Y*: 16.47%
• 10Y*: 21.45%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ILCG vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ILCG iShares Morningstar Growth ETF	9.80%	16.71%	32.82%	40.41%	-31.75%	24.33%	38.56%	33.22%	2.06%	30.57%
QQQ Invesco QQQ ETF	15.37%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between ILCG and QQQ is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Jul 2, 2004	0.95

The correlation between ILCG and QQQ has been stable across timeframes, ranging from 0.95 to 0.98 - a consistent structural relationship.

ILCG vs. QQQ - Sectors Allocation Comparison

Sectors	ILCG	QQQ
Technology	49.8%	53.8%
Communication Services	14.5%	15.8%
Consumer Cyclical	10.6%	12.3%
Industrials	8.3%	2.8%
Financial Services	6.0%	0.2%
Healthcare	5.3%	4.2%
Consumer Defensive	1.6%	7.7%
Real Estate	1.4%	0.1%
Basic Materials	1.1%	1.1%
Utilities	0.8%	1.4%
Energy	0.5%	0.6%

Return for Risk

ILCG vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ILCG

ILCG Risk / Return Rank: 40
ILCG Sharpe Ratio Rank: 44
ILCG Sortino Ratio Rank: 41
ILCG Omega Ratio Rank: 43
ILCG Calmar Ratio Rank: 34
ILCG Martin Ratio Rank: 37

QQQ

QQQ Risk / Return Rank: 67
QQQ Sharpe Ratio Rank: 70
QQQ Sortino Ratio Rank: 65
QQQ Omega Ratio Rank: 68
QQQ Calmar Ratio Rank: 64
QQQ Martin Ratio Rank: 66

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ILCG vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Morningstar Growth ETF (ILCG) and Invesco QQQ ETF (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.

	ILCG	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.38	2.04	-0.66
Sortino ratio: Return per unit of downside risk	1.88	2.65	-0.77
Omega ratio: Gain probability vs. loss probability	1.25	1.36	-0.11
Calmar ratio: Return relative to maximum drawdown	1.49	2.86	-1.37
Martin ratio: Return relative to average drawdown	5.20	10.81	-5.61
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ILCG vs. QQQ - Sharpe Ratio Comparison

The current ILCG Sharpe Ratio is 1.38, which is lower than the QQQ Sharpe Ratio of 2.04. The chart below compares the historical Sharpe Ratios of ILCG and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ILCG	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.38	2.04	-0.66
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.62	0.74	-0.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.83	0.96	-0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.58	0.40	+0.17

Drawdowns

ILCG vs. QQQ - Drawdown Comparison

The maximum ILCG drawdown since its inception was -52.98%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for ILCG and QQQ.

Drawdown Indicators

	ILCG	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-52.98%	-82.97%	+29.99%
Max Drawdown (1Y) Largest decline over 1 year	-15.65%	-11.96%	-3.69%
Max Drawdown (3Y) Largest decline over 3 years	-23.10%	-22.77%	-0.33%
Max Drawdown (5Y) Largest decline over 5 years	-35.38%	-35.12%	-0.26%
Max Drawdown (10Y) Largest decline over 10 years	-35.38%	-35.12%	-0.26%
Current Drawdown Current decline from peak	-5.07%	-5.14%	+0.07%
Average Drawdown Average peak-to-trough decline	-8.22%	-32.76%	+24.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.46%	3.15%	+1.31%

Volatility

ILCG vs. QQQ - Volatility Comparison

The current volatility for iShares Morningstar Growth ETF (ILCG) is 5.95%, while Invesco QQQ ETF (QQQ) has a volatility of 6.56%. This indicates that ILCG 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.

Volatility by Period

	ILCG	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.95%	6.56%	-0.61%
Volatility (6M) Calculated over the trailing 6-month period	13.56%	13.25%	+0.31%
Volatility (1Y) Calculated over the trailing 1-year period	16.83%	16.76%	+0.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.08%	22.49%	-0.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.57%	22.36%	-0.79%

ILCG vs. QQQ - Expense Ratio Comparison

ILCG has a 0.04% expense ratio, which is lower than QQQ's 0.18% 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%.

Dividends

ILCG vs. QQQ - Dividend Comparison

ILCG's dividend yield for the trailing twelve months is around 0.42%, more than QQQ's 0.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ILCG iShares Morningstar Growth ETF	0.42%	0.47%	0.50%	0.69%	0.75%	0.34%	0.28%	0.54%	0.81%	0.89%	0.95%	0.99%
QQQ Invesco QQQ ETF	0.40%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both ILCG and QQQ in my portfolio?

With a correlation of 0.95, ILCG and QQQ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, ILCG or QQQ?

QQQ has higher volatility (6.56%) compared to ILCG (5.95%). In terms of maximum drawdown, ILCG dropped -52.98% vs QQQ's -82.97%.

Which ETF is better, ILCG or QQQ?

On 10-year performance, QQQ leads with 21.45% vs 17.76% for ILCG. On fees, ILCG is cheaper at 0.04% per year. On volatility, ILCG has been the lower-risk option at 5.95%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ILCG or QQQ?

Over the 10-year period, QQQ has performed better with a 21.45% return vs 17.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ILCG or QQQ?

ILCG is cheaper with a 0.04% expense ratio, compared with 0.18% for QQQ.

Which ETF pays a higher dividend yield, ILCG or QQQ?

ILCG has the higher dividend yield at 0.42%, compared with 0.40% for QQQ.

What is the main difference between ILCG and QQQ?

ILCG is categorized as Large Cap Growth Equities, while QQQ is Nasdaq-100. ILCG tracks Morningstar US Large-Mid Cap Broad Growth Index Gross, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.04% for ILCG and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.04 vs 1.38), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.