IVOO vs QQQ
IVOO vs QQQ
Vanguard S&P Mid-Cap 400 ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IVOO has a lower expense ratio. QQQ delivered stronger 1-year returns. IVOO offers more diversification with 401 holdings.
Side-by-Side Comparison
| Metric | IVOO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.18% | |
| AUM | $3.8B | $455.8B | |
| Dividend Yield | 1.46% | 0.41% | |
| Holdings | 409 | 108 | |
| YTD Return | +15.28% | +16.83% | |
| 1Y Return | +24.14% | +26.58% | |
| 3Y Return (annualized) | +14.02% | +24.70% | |
| 5Y Return (annualized) | +8.71% | +14.88% | |
| Volatility (annualized) | 16.9% | 30.6% | |
| Max Drawdown | -42.5% | -83.0% | |
| Fund Family | Vanguard (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 7, 2010 | Mar 10, 1999 |
IVOO vs QQQ Performance
Vanguard S&P Mid-Cap 400 ETF (IVOO) is a ETF from Vanguard (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IVOO returned +24.14% while QQQ returned +26.58%. Year to date, IVOO is up 15.28% versus a gain of 16.83% for QQQ.
Over three years, IVOO compounded at +14.02% per year against +24.70% for QQQ; over five years the annualized figures are +8.71% and +14.88% respectively. Across the full 16-year window we track, QQQ has the edge at +13.06% annualized vs +11.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 16.9% for IVOO. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -42.5% for IVOO and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVOO charges 0.07% per year while QQQ charges 0.18%. On a $10,000 position that is $7 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, IVOO currently yields 1.46% against 0.41% for QQQ.
Holdings Overlap
IVOO and QQQ share 0 holdings out of 504 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVOO or QQQ?
IVOO has an expense ratio of 0.07% while QQQ charges 0.18%. IVOO is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, IVOO or QQQ?
Over the past year IVOO returned +24.14% vs +26.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), IVOO annualized +11.38% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, IVOO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.9% for IVOO. Worst drawdown: IVOO -42.5% vs QQQ -83.0%.
Should I hold both IVOO and QQQ?
IVOO and QQQ have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVOO and QQQ?
IVOO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, IVOO or QQQ?
IVOO yields 1.46% while QQQ yields 0.41%, so IVOO currently pays the higher dividend yield.
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