IYW vs. QQQ
IYW (iShares U.S. Technology ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - IYW is a Technology Equities fund tracking the Russell 1000 Technology RIC 22.5/45 Capped Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, IYW returned 26.22%/yr vs 21.97%/yr for QQQ. Their correlation of 0.95 suggests significant overlap in exposure. IYW charges 0.38%/yr vs 0.18%/yr for QQQ.
Performance
IYW vs. QQQ - Performance Comparison
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Returns By Period
In the year-to-date period, IYW achieves a 30.23% return, which is significantly higher than QQQ's 21.62% return. Over the past 10 years, IYW has outperformed QQQ with an annualized return of 26.22%, while QQQ has yielded a comparatively lower 21.97% annualized return.
IYW
- 1D
- 0.76%
- 1M
- 17.61%
- YTD
- 30.23%
- 6M
- 29.45%
- 1Y
- 63.02%
- 3Y*
- 35.66%
- 5Y*
- 23.59%
- 10Y*
- 26.22%
QQQ
- 1D
- 0.46%
- 1M
- 10.68%
- YTD
- 21.62%
- 6M
- 20.27%
- 1Y
- 43.30%
- 3Y*
- 28.89%
- 5Y*
- 18.43%
- 10Y*
- 21.97%
IYW vs. QQQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IYW iShares U.S. Technology ETF | 30.23% | 25.38% | 30.25% | 65.44% | -34.83% | 35.44% | 47.45% | 46.64% | -0.93% | 36.60% |
QQQ Invesco QQQ ETF | 21.62% | 20.77% | 25.58% | 54.86% | -32.58% | 27.42% | 48.62% | 38.96% | -0.13% | 32.66% |
Correlation
The correlation between IYW and QQQ is 0.95, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| 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 | 0.97 |
Correlation (All Time) Calculated using the full available price history since May 22, 2000 | 0.95 |
The correlation between IYW and QQQ has been stable across timeframes, ranging from 0.95 to 0.98 - a consistent structural relationship.
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Return for Risk
IYW vs. QQQ — Risk / Return Rank
IYW
QQQ
IYW vs. QQQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Technology ETF (IYW) 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.
| IYW | QQQ | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 3.16 | 2.73 | +0.43 |
Sortino ratioReturn per unit of downside risk | 3.87 | 3.55 | +0.33 |
Omega ratioGain probability vs. loss probability | 1.51 | 1.47 | +0.04 |
Calmar ratioReturn relative to maximum drawdown | 3.62 | 3.71 | -0.09 |
Martin ratioReturn relative to average drawdown | 11.88 | 14.30 | -2.42 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| IYW | QQQ | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.16 | 2.73 | +0.43 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.92 | 0.83 | +0.09 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.05 | 0.99 | +0.06 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.36 | 0.41 | -0.06 |
Drawdowns
IYW vs. QQQ - Drawdown Comparison
The maximum IYW drawdown since its inception was -81.90%, roughly equal to the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for IYW and QQQ.
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Drawdown Indicators
| IYW | QQQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -81.90% | -82.97% | +1.07% |
Max Drawdown (1Y)Largest decline over 1 year | -17.81% | -11.96% | -5.85% |
Max Drawdown (3Y)Largest decline over 3 years | -26.47% | -22.77% | -3.70% |
Max Drawdown (5Y)Largest decline over 5 years | -39.44% | -35.12% | -4.32% |
Max Drawdown (10Y)Largest decline over 10 years | -39.44% | -35.12% | -4.32% |
Current DrawdownCurrent decline from peak | 0.00% | 0.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -34.66% | -32.79% | -1.87% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.43% | 3.11% | +2.32% |
Volatility
IYW vs. QQQ - Volatility Comparison
iShares U.S. Technology ETF (IYW) has a higher volatility of 6.11% compared to Invesco QQQ ETF (QQQ) at 4.48%. This indicates that IYW'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.
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Volatility by Period
| IYW | QQQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.11% | 4.48% | +1.63% |
Volatility (6M)Calculated over the trailing 6-month period | 15.81% | 12.11% | +3.70% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.07% | 15.95% | +4.12% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 25.87% | 22.39% | +3.48% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 25.10% | 22.30% | +2.80% |
IYW vs. QQQ - Expense Ratio Comparison
IYW has a 0.38% expense ratio, which is higher than QQQ's 0.18% expense ratio.
Dividends
IYW vs. QQQ - Dividend Comparison
IYW's dividend yield for the trailing twelve months is around 0.10%, less than QQQ's 0.38% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYW iShares U.S. Technology ETF | 0.10% | 0.14% | 0.21% | 0.34% | 0.50% | 0.31% | 0.56% | 0.72% | 0.92% | 0.82% | 1.14% | 1.12% |
QQQ Invesco QQQ ETF | 0.38% | 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
With a correlation of 0.95, IYW 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.
IYW has higher volatility (6.11%) compared to QQQ (4.48%). In terms of maximum drawdown, IYW dropped -81.90% vs QQQ's -82.97%.
On 10-year performance, IYW leads with 26.22% vs 21.97% for QQQ. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 4.48%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYW has performed better with a 26.22% return vs 21.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
QQQ is cheaper with a 0.18% expense ratio, compared with 0.38% for IYW.
QQQ has the higher dividend yield at 0.38%, compared with 0.10% for IYW.
IYW is categorized as Technology Equities, while QQQ is Nasdaq-100. IYW tracks Russell 1000 Technology RIC 22.5/45 Capped Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.38% for IYW and 0.18% for QQQ.
IYW currently has the higher Sharpe Ratio (3.16 vs 2.73), 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.
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