IWO vs. QQQ
Compare and contrast key facts about iShares Russell 2000 Growth ETF (IWO) and Invesco QQQ (QQQ).
IWO and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IWO is a passively managed fund by iShares that tracks the performance of the Russell 2000 Growth Index. It was launched on Jul 24, 2000. 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 IWO 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: IWO or QQQ.
Key characteristics
| IWO | QQQ | |
|---|---|---|
| YTD Return | 12.96% | 19.54% |
| 1Y Return | 31.19% | 33.47% |
| 3Y Return (Ann) | -3.61% | 7.72% |
| 5Y Return (Ann) | 7.66% | 20.33% |
| 10Y Return (Ann) | 8.32% | 17.97% |
| Sharpe Ratio | 1.75 | 2.17 |
| Sortino Ratio | 2.47 | 2.84 |
| Omega Ratio | 1.29 | 1.39 |
| Calmar Ratio | 1.03 | 2.77 |
| Martin Ratio | 9.32 | 10.10 |
| Ulcer Index | 4.03% | 3.71% |
| Daily Std Dev | 21.41% | 17.30% |
| Max Drawdown | -60.10% | -82.98% |
| Current Drawdown | -13.79% | -2.95% |
Correlation
The correlation between IWO and QQQ is 0.81, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
IWO vs. QQQ - Performance Comparison
In the year-to-date period, IWO achieves a 12.96% return, which is significantly lower than QQQ's 19.54% return. Over the past 10 years, IWO has underperformed QQQ with an annualized return of 8.32%, while QQQ has yielded a comparatively higher 17.97% 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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IWO vs. QQQ - Expense Ratio Comparison
IWO has a 0.24% expense ratio, which is higher than QQQ's 0.20% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
IWO vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 Growth ETF (IWO) 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
IWO vs. QQQ - Dividend Comparison
IWO's dividend yield for the trailing twelve months is around 0.65%, more than QQQ's 0.62% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IWO iShares Russell 2000 Growth ETF | 0.65% | 0.73% | 0.75% | 0.32% | 0.44% | 0.71% | 0.76% | 0.73% | 0.97% | 0.89% | 0.73% | 0.72% |
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
IWO vs. QQQ - Drawdown Comparison
The maximum IWO drawdown since its inception was -60.10%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for IWO and QQQ. For additional features, visit the drawdowns tool.
Volatility
IWO vs. QQQ - Volatility Comparison
iShares Russell 2000 Growth ETF (IWO) has a higher volatility of 4.86% compared to Invesco QQQ (QQQ) at 4.62%. This indicates that IWO'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.