QQQ vs VEGA
QQQ vs VEGA
Invesco QQQ Trust, Series 1 vs AdvisorShares STAR Global Buy-Write ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | VEGA | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.25% | |
| AUM | $455.8B | $89M | |
| Dividend Yield | 0.41% | 1.26% | |
| Holdings | 108 | 13 | |
| YTD Return | +18.20% | +8.23% | |
| 1Y Return | +27.63% | +15.54% | |
| 3Y Return (annualized) | +25.54% | +13.20% | |
| 5Y Return (annualized) | +15.12% | +6.88% | |
| Volatility (annualized) | 30.6% | 9.8% | |
| Max Drawdown | -83.0% | -28.4% | |
| Fund Family | Invesco (US) | Advisor Shares | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Sep 17, 2012 |
QQQ vs VEGA Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and AdvisorShares STAR Global Buy-Write ETF (VEGA) is a ETF from Advisor Shares. Over the past year QQQ returned +27.63% while VEGA returned +15.54%. Year to date, QQQ is up 18.20% versus a gain of 8.23% for VEGA.
Over three years, QQQ compounded at +25.54% per year against +13.20% for VEGA; over five years the annualized figures are +15.12% and +6.88% respectively. Across the full 14-year window we track, QQQ has the edge at +13.11% annualized vs +6.18%. 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 9.8% for VEGA. 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 -28.4% for VEGA. 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VEGA charges 1.25%. On a $10,000 position that is $18 vs $125 annually, a gap of $107 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 1.26% for VEGA.
Holdings Overlap
QQQ and VEGA share 0 holdings out of 113 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 VEGA?
QQQ has an expense ratio of 0.18% while VEGA charges 1.25%. QQQ is the cheaper option. On a $10,000 investment, that is $107 per year of difference.
Which performed better, QQQ or VEGA?
Over the past year QQQ returned +27.63% vs +15.54% for VEGA, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), QQQ annualized +13.11% vs +6.18% for VEGA. Past performance does not guarantee future results.
Which is riskier, QQQ or VEGA?
QQQ has been the more volatile fund at 30.6% annualized versus 9.8% for VEGA. Worst drawdown: QQQ -83.0% vs VEGA -28.4%.
Should I hold both QQQ and VEGA?
QQQ and VEGA have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VEGA?
QQQ and VEGA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 113 unique securities.
Which pays a higher dividend, QQQ or VEGA?
QQQ yields 0.41% while VEGA yields 1.26%, so VEGA currently pays the higher dividend yield.
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