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QQQ vs. TIP

Invesco QQQ Trust, Series 1

QQQ
$--
vs

iShares TIPS Bond ETF

TIP
$--

Correlation

0.31
QQQInvesco QQQ Trust, Series 1
TIPiShares TIPS Bond ETF

What is QQQ?

Invesco QQQ is an exchange-traded fund based on the Nasdaq-100 Index. The Fund will, under most circumstances, consist of all of stocks in the Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. The Fund and the Index are rebalanced quarterly and reconstituted annually.

Snapshot
**

QQQ Invesco QQQ Trust, Series 1
TIP iShares TIPS Bond ETF
Inception date
Mar 10 1999
Dec 04 2003
Expense ratio
0.20%
0.19%
QQQ has a higher expense ratio than TIP by 0.01%. This can indicate that it’s more expensive to invest in QQQ than TIP.
Type
US Equities
US Bonds
QQQ targets investing in US Equities, while TIP targets investing in US Bonds.
Fund owner
Invesco
Blackrock (iShares)
QQQ is managed by Invesco, while TIP is managed by Blackrock (iShares).
Volume (1m avg. daily)
$17,559,045,883
$275,002,281
Both QQQ and TIP are considered high-volume assets. They’re less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets.
AUM
$197,956,569,440
$21,035,302,259
QQQ has more assets under management than TIP by $176,921,267,181. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
Nasdaq 100 Index
ICE US Treasury Inflation Linked Bond Index
QQQ is based off of the Nasdaq 100 Index, while TIP is based off of the ICE US Treasury Inflation Linked Bond Index
Inverse/Leveraged
No
No
QQQ and TIP use the same leverage ratio. Inverse and leveraged ETFs can be used to either take an opposite position or amplify returns of a given index.
Passive/Active
Passive
Passive
QQQ and TIP both use a Passive investing strategy. In an actively managed fund, the fund manager makes decisions about how funds are invested. A passively managed fund typically tries to track or follow a market index.
Dividend
No
No
QQQ and TIP may offer dividends. The frequency and yield of the dividend may not be the same.
Prospectus
QQQ may issue a K1, while TIP does not. You can find non-K1 alternatives for QQQ in its “Related ETFs” section.
When ETFs are uncorrelated, it’s common for them to be used as complements in a trading strategy. This means it makes sense to be holding both of them at the same time, or to use one as a hedge for the other.

Automated Strategies
Related toQQQ

#BTD

Buy the Dips: Nasdaq 100

Category

Featured, Technology Focus

Risk Rating

Aggressive

Automated Strategies
Related toTIP

#ROT

Ride the Oil Trend

Category

Featured, Diversification

Risk Rating

Aggressive

Create your own algorithmic
trading strategy

Disclaimers

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We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.

**

We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.