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TIP vs. QQQ

iShares TIPS Bond ETF

TIP
$--
vs

Invesco QQQ Trust, Series 1

QQQ
$--

Correlation

0.31
TIPiShares TIPS Bond ETF
QQQInvesco QQQ Trust, Series 1

What is TIP?

The Fund seeks to track the investment results of the ICE U.S. Treasury Inflation Linked Bond Index (the "Underlying Index"), which tracks the performance of inflation-protected public obligations of the U.S. Treasury, commonly known as "TIPS," that have a remaining maturity of more than one year. TIPS are securities issued by the U.S. Treasury that are designed to provide inflation protection to investors. TIPS are income generating instruments whose interest and principal payments are adjusted for inflation a sustained increase in prices that erodes the purchasing power of money.

Snapshot
**

TIP iShares TIPS Bond ETF
QQQ Invesco QQQ Trust, Series 1
Inception date
Dec 04 2003
Mar 10 1999
Expense ratio
0.19%
0.20%
TIP has a lower expense ratio than QQQ by 0.01%. This can indicate that it’s cheaper to invest in TIP than QQQ.
Type
US Bonds
US Equities
TIP targets investing in US Bonds, while QQQ targets investing in US Equities.
Fund owner
Blackrock (iShares)
Invesco
TIP is managed by Blackrock (iShares), while QQQ is managed by Invesco.
Volume (1m avg. daily)
$275,002,281
$17,559,045,883
Both TIP and QQQ 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
$21,035,302,259
$197,956,569,440
TIP has more assets under management than QQQ by $176,921,267,181. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
ICE US Treasury Inflation Linked Bond Index
Nasdaq 100 Index
TIP is based off of the ICE US Treasury Inflation Linked Bond Index, while QQQ is based off of the Nasdaq 100 Index
Inverse/Leveraged
No
No
TIP and QQQ 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
TIP and QQQ 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
TIP and QQQ 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 toTIP

#ROT

Ride the Oil Trend

Category

Featured, Diversification

Risk Rating

Aggressive

Automated Strategies
Related toQQQ

#BTD

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Category

Featured, Technology Focus

Risk Rating

Aggressive

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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.