IWS vs. QQQ

Last updated Jun 23, 2026

IWS (iShares Russell Mid-Cap Value ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - IWS is a Mid Cap Value Equities fund tracking the Russell Midcap Value Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, IWS returned 10.68%/yr vs 22.48%/yr for QQQ. A 0.73 correlation means they provide meaningful diversification when combined. IWS charges 0.23%/yr vs 0.18%/yr for QQQ.

Performance

IWS vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell Mid-Cap Value ETF (IWS) 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, IWS achieves a 17.05% return, which is significantly lower than QQQ's 20.41% return. Over the past 10 years, IWS has underperformed QQQ with an annualized return of 10.68%, while QQQ has yielded a comparatively higher 22.48% annualized return.

IWS

• 1D: 0.69%
• 1M: 3.76%
• YTD: 17.05%
• 6M: 15.46%
• 1Y: 29.21%
• 3Y*: 17.66%
• 5Y*: 9.34%
• 10Y*: 10.68%

QQQ

• 1D: -0.25%
• 1M: 2.96%
• YTD: 20.41%
• 6M: 19.46%
• 1Y: 40.91%
• 3Y*: 27.47%
• 5Y*: 16.94%
• 10Y*: 22.48%

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

IWS vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IWS iShares Russell Mid-Cap Value ETF	17.05%	10.82%	12.91%	12.52%	-12.29%	28.10%	4.83%	26.73%	-12.43%	13.14%
QQQ Invesco QQQ ETF	20.41%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between IWS and QQQ is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Jul 24, 2001	0.73

The correlation between IWS and QQQ shifts across timeframes, from 0.57 (1 year) to 0.73 (all time), reflecting how their relationship changes across market environments.

IWS vs. QQQ - Sectors Allocation Comparison

Sectors	IWS	QQQ
Technology	18.7%	58.7%
Industrials	16.2%	2.6%
Financial Services	13.7%	0.2%
Consumer Cyclical	8.5%	11.4%
Real Estate	8.3%	0.1%
Healthcare	7.6%	3.7%
Energy	7.4%	0.5%
Utilities	6.6%	1.2%
Basic Materials	5.3%	1.0%
Consumer Defensive	4.7%	6.4%
Communication Services	3.1%	14.3%

Return for Risk

IWS vs. QQQ — Risk / Return Rank

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

IWS

IWS Risk / Return Rank: 72
IWS Sharpe Ratio Rank: 69
IWS Sortino Ratio Rank: 71
IWS Omega Ratio Rank: 65
IWS Calmar Ratio Rank: 78
IWS Martin Ratio Rank: 78

QQQ

QQQ Risk / Return Rank: 72
QQQ Sharpe Ratio Rank: 76
QQQ Sortino Ratio Rank: 70
QQQ Omega Ratio Rank: 72
QQQ Calmar Ratio Rank: 70
QQQ Martin Ratio Rank: 71

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.

IWS vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell Mid-Cap Value ETF (IWS) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	IWS	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.17	2.33	-0.16
Sortino ratio: Return per unit of downside risk	3.07	3.03	+0.04
Omega ratio: Gain probability vs. loss probability	1.38	1.41	-0.03
Calmar ratio: Return relative to maximum drawdown	3.90	3.44	+0.46
Martin ratio: Return relative to average drawdown	14.62	12.79	+1.83

IWS vs. QQQ - Sharpe Ratio Comparison

The current IWS Sharpe Ratio is 2.17, which is comparable to the QQQ Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of IWS 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.

Drawdowns

IWS vs. QQQ - Drawdown Comparison

The maximum IWS drawdown since its inception was -62.40%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for IWS and QQQ.

Drawdown Indicators

	IWS	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-62.40%	-82.97%	+20.57%
Max Drawdown (1Y) Largest decline over 1 year	-7.53%	-11.96%	+4.43%
Max Drawdown (3Y) Largest decline over 3 years	-20.57%	-22.77%	+2.20%
Max Drawdown (5Y) Largest decline over 5 years	-21.23%	-35.12%	+13.89%
Max Drawdown (10Y) Largest decline over 10 years	-43.83%	-35.12%	-8.71%
Current Drawdown Current decline from peak	-0.16%	-0.99%	+0.83%
Average Drawdown Average peak-to-trough decline	-8.00%	-32.73%	+24.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.00%	3.21%	-1.21%

Volatility

IWS vs. QQQ - Volatility Comparison

The current volatility for iShares Russell Mid-Cap Value ETF (IWS) is 4.18%, while Invesco QQQ ETF (QQQ) has a volatility of 8.47%. This indicates that IWS 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

	IWS	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.18%	8.47%	-4.29%
Volatility (6M) Calculated over the trailing 6-month period	10.04%	14.20%	-4.16%
Volatility (1Y) Calculated over the trailing 1-year period	13.55%	17.67%	-4.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.32%	22.64%	-5.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.39%	22.43%	-3.04%

IWS vs. QQQ - Expense Ratio Comparison

IWS has a 0.23% expense ratio, which is higher than QQQ's 0.18% 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%.

Dividends

IWS vs. QQQ - Dividend Comparison

IWS's dividend yield for the trailing twelve months is around 1.33%, more than QQQ's 0.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWS iShares Russell Mid-Cap Value ETF	1.33%	1.53%	1.50%	1.76%	1.93%	1.39%	1.87%	1.97%	2.53%	1.96%	2.10%	2.14%
QQQ Invesco QQQ ETF	0.41%	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 IWS and QQQ in my portfolio?

IWS and QQQ have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IWS or QQQ?

QQQ has higher volatility (8.47%) compared to IWS (4.18%). In terms of maximum drawdown, IWS dropped -62.40% vs QQQ's -82.97%.

Which ETF is better, IWS or QQQ?

On 10-year performance, QQQ leads with 22.48% vs 10.68% for IWS. On fees, QQQ is cheaper at 0.18% per year. On volatility, IWS has been the lower-risk option at 4.18%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWS or QQQ?

Over the 10-year period, QQQ has performed better with a 22.48% return vs 10.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWS or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.23% for IWS.

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

IWS has the higher dividend yield at 1.33%, compared with 0.49% for QQQ.

What is the main difference between IWS and QQQ?

IWS is categorized as Mid Cap Value Equities, while QQQ is Nasdaq-100. IWS tracks Russell Midcap Value Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.23% for IWS and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.33 vs 2.17), 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.