QQQ vs VDE
QQQ vs VDE
Invesco QQQ Trust, Series 1 vs Vanguard Energy ETF
Quick Verdict
VDE has a lower expense ratio. VDE delivered stronger 1-year returns. VDE offers more diversification with 112 holdings.
Side-by-Side Comparison
| Metric | QQQ | VDE | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.09% | |
| AUM | $455.8B | $9.0B | |
| Dividend Yield | 0.41% | 3.43% | |
| Holdings | 108 | 109 | |
| YTD Return | +18.34% | +30.05% | |
| 1Y Return | +28.94% | +41.79% | |
| 3Y Return (annualized) | +25.28% | +14.15% | |
| 5Y Return (annualized) | +15.22% | +23.79% | |
| Volatility (annualized) | 30.6% | 26.6% | |
| Max Drawdown | -83.0% | -78.5% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Sep 23, 2004 |
QQQ vs VDE Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Energy ETF (VDE) is a ETF from Vanguard (US). Over the past year QQQ returned +28.94% while VDE returned +41.79%. Year to date, QQQ is up 18.34% versus a gain of 30.05% for VDE.
Over three years, QQQ compounded at +25.28% per year against +14.15% for VDE; over five years the annualized figures are +15.22% and +23.79% respectively. Across the full 22-year window we track, QQQ has the edge at +13.12% annualized vs +6.57%. 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 26.6% for VDE. 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 -78.5% for VDE. 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VDE charges 0.09%. On a $10,000 position that is $18 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 3.43% for VDE.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, QQQ or VDE?
QQQ has an expense ratio of 0.18% while VDE charges 0.09%. VDE is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, QQQ or VDE?
Over the past year QQQ returned +28.94% vs +41.79% for VDE, so VDE leads on 1-year performance. Over the longest common window we track (22 years), QQQ annualized +13.12% vs +6.57% for VDE. Past performance does not guarantee future results.
Which is riskier, QQQ or VDE?
QQQ has been the more volatile fund at 30.6% annualized versus 26.6% for VDE. Worst drawdown: QQQ -83.0% vs VDE -78.5%.
Should I hold both QQQ and VDE?
QQQ and VDE have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VDE?
QQQ and VDE share 2 common holdings with a 0.5% weight overlap. Combined, they hold 213 unique securities.
Which pays a higher dividend, QQQ or VDE?
QQQ yields 0.41% while VDE yields 3.43%, so VDE currently pays the higher dividend yield.
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