Should You Really Invest in QQQ Right Now? Or Is IVV the Better Buy? Here's What the Data Suggests.
Written by Katie Brockman for The Motley Fool -> IVV offers a significantly lower expense ratio and higher trailing-12-month dividend yield than QQQ. QQQ has delivered higher one- and five-year total returns, but with greater volatility along the way. IVV offers broader divers
IVV offers a significantly lower expense ratio and higher trailing-12-month dividend yield than QQQ.
QQQ has delivered higher one- and five-year total returns, but with greater volatility along the way.
IVV offers broader diversification, with around five times as many holdings as QQQ.
Choosing between these two behemoths involves balancing high-octane growth against broader market stability.
While the Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) concentrates on the largest non-financial leaders on the Nasdaq-100 , the iShares Core S&P 500 ETF (NYSEMKT:IVV) tracks 500 of the largest U.S. companies and offers a more diversified core holding for many portfolios.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
IVV is significantly more affordable, with an expense ratio of 0.03% compared to QQQ’s 0.18%. IVV also offers a substantially higher payout, with a dividend yield more than double that of QQQ.
IVV tracks the S&P 500 , with just over 500 holdings. Its sector allocations include technology at 39% of assets, followed by financial services and communication services. Its largest positions include Nvidia , Apple , and Microsoft , and it has paid $8.06 per share in dividends over the trailing 12 months.
