QQQ vs IWM: Head-to-Head Comparison
QQQ vs IWM: Invesco QQQ Trust has an expense ratio of 0.20% while iShares Russell 2000 ETF charges 0.19%. QQQ holds 101 securities vs IWM's 1,955. 5-year returns: 19.50% vs 8.20%.
Last updated: April 2026
Nasdaq vs Small Cap
Quick Verdict
Both ETFs score equally well for beginners (8.5/10). Your choice depends on your specific investment goals.
Side-by-Side Comparison
| Metric | QQQ | IWM |
|---|---|---|
| Expense Ratio | 0.20% | 0.19% |
| AUM | $310.0B | $72.0B |
| Dividend Yield | 0.60% | 1.30% |
| Holdings | 101 | 1,955 |
| 1-Year Return | 29.80% | 17.80% |
| 5-Year Return (Ann.) | 19.50% | 8.20% |
| 10-Year Return (Ann.) | 18.50% | 7.80% |
| Beta | 1.15 | 1.22 |
| P/E Ratio | 33.2 | 28.5 |
QQQ 5-year annualized return is 19.50% compared to IWM's 8.20%. Over 10 years, QQQ returned 18.50% vs IWM's 7.80%.
View data table
| Period | QQQ Return | IWM Return |
|---|---|---|
| YTD | 3.50% | 1.50% |
| 1 Year | 29.80% | 17.80% |
| 3 Year | 13.20% | 2.50% |
| 5 Year | 19.50% | 8.20% |
| 10 Year | 18.50% | 7.80% |
Key Differences Between QQQ and IWM
QQQ (Invesco QQQ Trust) is a u.s. large-cap growth fund managed by Invesco. QQQ tracks the Nasdaq-100 index, which includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange. It is heavily tilted toward technology and growth stocks, making it a favorite for investors who want concentrated exposure to the tech sector. Beginners should understand that QQQ can deliver higher returns than the S&P 500 in good years but also experiences sharper declines during downturns.
IWM (iShares Russell 2000 ETF) is a u.s. small-cap blend fund managed by BlackRock. IWM tracks the Russell 2000 index, which includes 2,000 small-cap U.S. companies. Small-cap stocks are younger, faster-growing companies that have historically delivered higher returns than large-caps over very long time periods, but with significantly more volatility. Beginners should view IWM as a way to add growth potential through smaller companies that could become the large-caps of tomorrow.
The most notable differences are in fees (0.20% vs 0.19%), number of holdings (101 vs 1,955), and 5-year returns (19.50% vs 8.20%).
QQQ vs IWM multi-factor comparison: QQQ has a 0.20% expense ratio, 19.50% 5-year return, 101 holdings, 1.15 beta, and 0.60% yield. IWM has 0.19% expense ratio, 8.20% 5-year return, 1,955 holdings, 1.22 beta, and 1.30% yield.
View data table
| Metric | QQQ | IWM |
|---|---|---|
| Expense Ratio | 0.20% | 0.19% |
| 5-Year Return | 19.50% | 8.20% |
| Holdings | 101 | 1,955 |
| Beta | 1.15 | 1.22 |
| Dividend Yield | 0.60% | 1.30% |
Want the full framework? This 2-hour ETF course teaches you exactly how to pick, buy, and hold profitable ETFs — from zero to confident investor. Under $15.
Ready to invest? Open an IBKR account in 10 minutes and get free stock. $0 commissions on US ETFs • Fractional shares from $1 • 150+ global markets.
Holdings Overlap Analysis
0%
Holdings Overlap
QQQ and IWM share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
QQQ and IWM share 0% of their top holdings (low overlap). QQQ has 101 total holdings and IWM has 1,955.
View data table
| Metric | QQQ | IWM |
|---|---|---|
| Overlap | 0% | 0% |
| Unique Holdings | 100% | 100% |
| Total Holdings | 101 | 1,955 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
QQQ
Fee cost: $1,696
IWM
Fee cost: $1,613
Over 20 years, the fee difference amounts to $83 on a $10,000 investment. The cost difference is negligible — choose based on other factors.
On a $10,000 investment over 20 years at 8% return, QQQ (0.20% fee) grows to $44,913 while IWM (0.19% fee) grows to $44,997. The fee difference costs $84.
View data table
| Year | QQQ Value | IWM Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,558 | $14,564 |
| 10 | $21,193 | $21,212 |
| 15 | $30,852 | $30,895 |
| 20 | $44,913 | $44,997 |
Which One Should a Beginner Choose?
Choose QQQ if: You want growth-oriented investors with a long time horizon and higher risk tolerance, investors who want concentrated exposure to technology and innovation leaders, younger investors who can tolerate short-term volatility for potentially higher long-term returns. It's managed by Invesco with an expense ratio of 0.20%.
Choose IWM if: You want investors with a long time horizon who want small-cap growth exposure, those looking to diversify beyond large-cap stocks in their portfolio, investors who believe small-cap stocks are poised for a rebound relative to large-caps. It's managed by BlackRock with an expense ratio of 0.19%.
Can You Own Both QQQ and IWM?
Absolutely! With only 0% overlap, QQQ and IWM complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy QQQ or IWM?▾
Both ETFs score equally well for beginners (8.5/10). Your choice depends on your specific investment goals. However, both are solid options. QQQ is best for investors who want growth-oriented investors with a long time horizon and higher risk tolerance, while IWM is better suited for investors with a long time horizon who want small-cap growth exposure.
What is the difference between QQQ and IWM?▾
QQQ (Invesco QQQ Trust) tracks u.s. large-cap growth investments with 101 holdings and a 0.20% expense ratio. IWM (iShares Russell 2000 ETF) focuses on u.s. small-cap blend with 1,955 holdings at 0.19%. Their top holdings overlap by 0%.
Can I own both QQQ and IWM?▾
Yes! With only 0% holdings overlap, QQQ and IWM complement each other well. Owning both gives you broader diversification.