QQQ vs VBND
QQQ vs VBND
Invesco QQQ Trust, Series 1 vs Vident US Bond Strategy ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VBND offers more diversification with 152 holdings.
Side-by-Side Comparison
| Metric | QQQ | VBND | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.41% | |
| AUM | $455.8B | $525M | |
| Dividend Yield | 0.41% | 4.25% | |
| Holdings | 108 | 192 | |
| YTD Return | +18.34% | +0.45% | |
| 1Y Return | +28.94% | +2.79% | |
| 3Y Return (annualized) | +25.28% | +4.73% | |
| 5Y Return (annualized) | +15.22% | -0.11% | |
| Volatility (annualized) | 30.6% | 5.3% | |
| Max Drawdown | -83.0% | -19.0% | |
| Fund Family | Invesco (US) | Vident Financial | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Oct 15, 2014 |
QQQ vs VBND Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vident US Bond Strategy ETF (VBND) is a ETF from Vident Financial. Over the past year QQQ returned +28.94% while VBND returned +2.79%. Year to date, QQQ is up 18.34% versus a gain of 0.45% for VBND.
Over three years, QQQ compounded at +25.28% per year against +4.73% for VBND; over five years the annualized figures are +15.22% and -0.11% respectively. Across the full 12-year window we track, QQQ has the edge at +13.12% annualized vs +0.35%. 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 5.3% for VBND. 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 -19.0% for VBND. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VBND charges 0.41%. On a $10,000 position that is $18 vs $41 annually, a gap of $23 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.25% for VBND.
Holdings Overlap
QQQ and VBND share 0 holdings out of 255 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, QQQ or VBND?
QQQ has an expense ratio of 0.18% while VBND charges 0.41%. QQQ is the cheaper option. On a $10,000 investment, that is $23 per year of difference.
Which performed better, QQQ or VBND?
Over the past year QQQ returned +28.94% vs +2.79% for VBND, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), QQQ annualized +13.12% vs +0.35% for VBND. Past performance does not guarantee future results.
Which is riskier, QQQ or VBND?
QQQ has been the more volatile fund at 30.6% annualized versus 5.3% for VBND. Worst drawdown: QQQ -83.0% vs VBND -19.0%.
Should I hold both QQQ and VBND?
QQQ and VBND have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VBND?
QQQ and VBND share 0 common holdings with a 0.0% weight overlap. Combined, they hold 255 unique securities.
Which pays a higher dividend, QQQ or VBND?
QQQ yields 0.41% while VBND yields 4.25%, so VBND currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.