QQQ vs. IAU

Last updated Jun 6, 2026

QQQ (Invesco QQQ ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, QQQ returned 21.27%/yr vs 12.97%/yr for IAU. At a 0.05 correlation, their price movements are largely independent. QQQ charges 0.18%/yr vs 0.25%/yr for IAU.

Performance

QQQ vs. IAU - Performance Comparison

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

Returns By Period

In the year-to-date period, QQQ achieves a 14.92% return, which is significantly higher than IAU's 0.06% return. Over the past 10 years, QQQ has outperformed IAU with an annualized return of 21.27%, while IAU has yielded a comparatively lower 12.97% annualized return.

QQQ

• 1D: -4.80%
• 1M: 1.34%
• YTD: 14.92%
• 6M: 13.01%
• 1Y: 35.00%
• 3Y*: 26.46%
• 5Y*: 16.70%
• 10Y*: 21.27%

IAU

• 1D: -3.63%
• 1M: -8.02%
• YTD: 0.06%
• 6M: 2.63%
• 1Y: 28.33%
• 3Y*: 29.73%
• 5Y*: 17.65%
• 10Y*: 12.97%

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

QQQ vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QQQ Invesco QQQ ETF	14.92%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%
IAU iShares Gold Trust	0.06%	63.95%	26.85%	12.84%	-0.63%	-4.00%	25.03%	17.98%	-1.76%	12.91%

Correlation

The correlation between QQQ and IAU is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.19
Correlation (3Y) Calculated over the trailing 3-year period	0.13
Correlation (5Y) Calculated over the trailing 5-year period	0.10
Correlation (10Y) Calculated over the trailing 10-year period	0.06
Correlation (All Time) Calculated using the full available price history since Jan 31, 2005	0.05

The correlation between QQQ and IAU shifts across timeframes, from 0.05 (all time) to 0.19 (1 year), reflecting how their relationship changes across market environments.

QQQ vs. IAU - Sectors Allocation Comparison

Sectors	QQQ	IAU
Technology	53.8%	-
Communication Services	15.8%	-
Consumer Cyclical	12.3%	-
Consumer Defensive	7.7%	-
Healthcare	4.2%	-
Industrials	2.8%	-
Utilities	1.4%	-
Basic Materials	1.1%	-
Energy	0.6%	-
Financial Services	0.2%	-
Real Estate	0.1%	100.0%

Return for Risk

QQQ vs. IAU — Risk / Return Rank

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

QQQ

QQQ Risk / Return Rank: 62
QQQ Sharpe Ratio Rank: 65
QQQ Sortino Ratio Rank: 58
QQQ Omega Ratio Rank: 62
QQQ Calmar Ratio Rank: 60
QQQ Martin Ratio Rank: 63

IAU

IAU Risk / Return Rank: 29
IAU Sharpe Ratio Rank: 30
IAU Sortino Ratio Rank: 27
IAU Omega Ratio Rank: 33
IAU Calmar Ratio Rank: 30
IAU Martin Ratio Rank: 27

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.

QQQ vs. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ ETF (QQQ) and iShares Gold Trust (IAU). 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.

	QQQ	IAU	Difference
Sharpe ratio: Return per unit of total volatility	2.11	1.07	+1.04
Sortino ratio: Return per unit of downside risk	2.72	1.45	+1.28
Omega ratio: Gain probability vs. loss probability	1.37	1.22	+0.15
Calmar ratio: Return relative to maximum drawdown	2.94	1.42	+1.52
Martin ratio: Return relative to average drawdown	11.22	3.60	+7.62
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QQQ vs. IAU - Sharpe Ratio Comparison

The current QQQ Sharpe Ratio is 2.11, which is higher than the IAU Sharpe Ratio of 1.07. The chart below compares the historical Sharpe Ratios of QQQ and IAU, 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

	QQQ	IAU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.11	1.07	+1.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.75	0.98	-0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.95	0.82	+0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.61	-0.21

Drawdowns

QQQ vs. IAU - Drawdown Comparison

The maximum QQQ drawdown since its inception was -82.97%, which is greater than IAU's maximum drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for QQQ and IAU.

Drawdown Indicators

	QQQ	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-82.97%	-45.14%	-37.83%
Max Drawdown (1Y) Largest decline over 1 year	-11.96%	-20.04%	+8.08%
Max Drawdown (3Y) Largest decline over 3 years	-22.77%	-20.04%	-2.73%
Max Drawdown (5Y) Largest decline over 5 years	-35.12%	-20.93%	-14.19%
Max Drawdown (10Y) Largest decline over 10 years	-35.12%	-21.82%	-13.30%
Current Drawdown Current decline from peak	-5.51%	-20.04%	+14.53%
Average Drawdown Average peak-to-trough decline	-32.78%	-15.97%	-16.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.13%	7.89%	-4.76%

Volatility

QQQ vs. IAU - Volatility Comparison

Invesco QQQ ETF (QQQ) has a higher volatility of 6.68% compared to iShares Gold Trust (IAU) at 5.64%. This indicates that QQQ's price experiences larger fluctuations and is considered to be riskier than IAU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QQQ	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.68%	5.64%	+1.04%
Volatility (6M) Calculated over the trailing 6-month period	13.12%	23.33%	-10.21%
Volatility (1Y) Calculated over the trailing 1-year period	16.69%	26.67%	-9.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.47%	18.01%	+4.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.34%	15.94%	+6.40%

QQQ vs. IAU - Expense Ratio Comparison

QQQ has a 0.18% expense ratio, which is lower than IAU's 0.25% 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

QQQ vs. IAU - Dividend Comparison

QQQ's dividend yield for the trailing twelve months is around 0.40%, while IAU has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAU iShares Gold Trust	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 QQQ and IAU in my portfolio?

QQQ and IAU have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QQQ or IAU?

QQQ has higher volatility (6.68%) compared to IAU (5.64%). In terms of maximum drawdown, QQQ dropped -82.97% vs IAU's -45.14%.

Which ETF is better, QQQ or IAU?

On 10-year performance, QQQ leads with 21.27% vs 12.97% for IAU. On fees, QQQ is cheaper at 0.18% per year. On volatility, IAU has been the lower-risk option at 5.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QQQ or IAU?

Over the 10-year period, QQQ has performed better with a 21.27% return vs 12.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QQQ or IAU?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.25% for IAU.

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

QQQ has the higher dividend yield at 0.40%, compared with 0.00% for IAU.

What is the main difference between QQQ and IAU?

QQQ is categorized as Nasdaq-100, while IAU is Gold. QQQ tracks NASDAQ-100 Index, while IAU tracks LBMA Gold Price. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.18% for QQQ and 0.25% for IAU.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.11 vs 1.07), 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.