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QQQ vs. IGSB: What’s The Difference?

The Invesco QQQ Trust (QQQ) and the iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) are both among the Top 100 ETFs. QQQ is a Invesco Large Growth fund and IGSB is a iShares Short-Term Bond fund. So, what’s the difference between QQQ and IGSB? And which fund is better?

The expense ratio of QQQ is 0.14 percentage points higher than IGSB’s (0.2% vs. 0.06%). QQQ also has a high exposure to the technology sector while IGSB is mostly comprised of BBB bonds. Overall, QQQ has provided higher returns than IGSB over the past ten years.

In this article, we’ll compare QQQ vs. IGSB. We’ll look at industry exposure and annual returns, as well as at their fund composition and holdings. Moreover, I’ll also discuss QQQ’s and IGSB’s performance, portfolio growth, and risk metrics and examine how these affect their overall returns.


NameInvesco QQQ TrustiShares 1-5 Year Investment Grade Corporate Bond ETF
CategoryLarge GrowthShort-Term Bond
Avg. Return21.27%2.51%
Div. Yield0.49%2.02%
Expense Ratio0.2%0.06%

The Invesco QQQ Trust (QQQ) is a Large Growth fund that is issued by Invesco. It currently has 174.51B total assets under management and has yielded an average annual return of 21.27% over the past 10 years. The fund has a dividend yield of 0.49% with an expense ratio of 0.2%.

The iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) is a Short-Term Bond fund that is issued by iShares. It currently has 26.63B total assets under management and has yielded an average annual return of 2.51% over the past 10 years. The fund has a dividend yield of 2.02% with an expense ratio of 0.06%.

QQQ’s dividend yield is 1.53% lower than that of IGSB (0.49% vs. 2.02%). Also, QQQ yielded on average 18.76% more per year over the past decade (21.27% vs. 2.51%). The expense ratio of QQQ is 0.14 percentage points higher than IGSB’s (0.2% vs. 0.06%).

Fund Composition


QQQ - Holdings

QQQ HoldingsWeight
Apple Inc11.0%
Microsoft Corp9.82% Inc8.35%
Facebook Inc Class A4.01%
Facebook Inc A4.01%
Alphabet Inc Class C3.9%
Tesla Inc3.9%
NVIDIA Corp3.65%
Alphabet Inc Class A3.53%
Alphabet Inc A3.53%

QQQ’s Top Holdings are Apple Inc, Microsoft Corp, Inc, Facebook Inc Class A, and Facebook Inc A at 11.0%, 9.82%, 8.35%, 4.01%, and 4.01%.

Alphabet Inc Class C (3.9%), Tesla Inc (3.9%), and NVIDIA Corp (3.65%) have a slightly smaller but still significant weight. Alphabet Inc Class A and Alphabet Inc A are also represented in the QQQ’s holdings at 3.53% and 3.53%.

IGSB - Holdings

IGSB Bond SectorsWeight
Below B0.0%
US Government0.0%

IGSB’s Top Bond Sectors are ratings of BBB, A, AA, AAA, and BB at 50.48%, 40.04%, 7.46%, 2.21%, and 0.09%. The fund is less weighted towards Below B (0.0%), B (0.0%), and US Government (0.0%) rated bonds.


Annual Returns

QQQ vs. IGSB - Annual Returns


QQQ had its best year in 2020 with an annual return of 48.6%. QQQ’s worst year over the past decade yielded -0.14% and occurred in 2018. In most years the Invesco QQQ Trust provided moderate returns such as in 2012, 2014, and 2010 where annual returns amounted to 18.09%, 19.12%, and 19.89% respectively.

The year 2019 was the strongest year for IGSB, returning 7.01% on an annual basis. The poorest year for IGSB in the last ten years was 2015, with a yield of 0.7%. Most years the iShares 1-5 Year Investment Grade Corporate Bond ETF has given investors modest returns, such as in 2011, 2017, and 2016, when gains were 1.34%, 1.41%, and 1.77% respectively.

Portfolio Growth

QQQ vs. IGSB - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR

A $10,000 investment in QQQ would have resulted in a final balance of $76,522. This is a profit of $66,522 over 11 years and amounts to a compound annual growth rate (CAGR) of 21.27%.

With a $10,000 investment in IGSB, the end total would have been $13,103. This equates to a $3,103 profit over 11 years and a compound annual growth rate (CAGR) of 2.51%.

QQQ’s CAGR is 18.76 percentage points higher than that of IGSB and as a result, would have yielded $63,419 more on a $10,000 investment. Thus, QQQ outperformed IGSB by 18.76% annually.

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