QQQ vs VBK
QQQ vs VBK
Invesco QQQ Trust, Series 1 vs Vanguard Small Cap Growth ETF
Quick Verdict
VBK has a lower expense ratio. QQQ delivered stronger 1-year returns. VBK offers more diversification with 542 holdings.
Side-by-Side Comparison
| Metric | QQQ | VBK | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.05% | |
| AUM | $455.8B | $24.8B | |
| Dividend Yield | 0.41% | 0.57% | |
| Holdings | 108 | 561 | |
| YTD Return | +16.83% | +14.94% | |
| 1Y Return | +26.58% | +26.03% | |
| 3Y Return (annualized) | +24.70% | +15.65% | |
| 5Y Return (annualized) | +14.88% | +4.74% | |
| Volatility (annualized) | 30.6% | 19.6% | |
| Max Drawdown | -83.0% | -59.4% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 26, 2004 |
QQQ vs VBK Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Small Cap Growth ETF (VBK) is a ETF from Vanguard (US). Over the past year QQQ returned +26.58% while VBK returned +26.03%. Year to date, QQQ is up 16.83% versus a gain of 14.94% for VBK.
Over three years, QQQ compounded at +24.70% per year against +15.65% for VBK; over five years the annualized figures are +14.88% and +4.74% respectively. Across the full 23-year window we track, QQQ has the edge at +13.06% annualized vs +9.30%. 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 19.6% for VBK. 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 -83.0% for QQQ and -59.4% for VBK. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VBK charges 0.05%. On a $10,000 position that is $18 vs $5 annually, a gap of $13 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.57% for VBK.
Holdings Overlap
QQQ and VBK share 1 holdings out of 644 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VBK | Difference |
|---|---|---|---|
| ALAB | 0.27% | 1.02% | 0.75% |
Frequently Asked Questions
Which is cheaper, QQQ or VBK?
QQQ has an expense ratio of 0.18% while VBK charges 0.05%. VBK is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, QQQ or VBK?
Over the past year QQQ returned +26.58% vs +26.03% for VBK, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +13.06% vs +9.30% for VBK. Past performance does not guarantee future results.
Which is riskier, QQQ or VBK?
QQQ has been the more volatile fund at 30.6% annualized versus 19.6% for VBK. Worst drawdown: QQQ -83.0% vs VBK -59.4%.
Should I hold both QQQ and VBK?
QQQ and VBK have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VBK?
QQQ and VBK share 1 common holdings with a 0.3% weight overlap. Combined, they hold 644 unique securities.
Which pays a higher dividend, QQQ or VBK?
QQQ yields 0.41% while VBK yields 0.57%, so VBK currently pays the higher dividend yield.
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