QQQ vs VEU
QQQ vs VEU
Invesco QQQ Trust, Series 1 vs Vanguard FTSE All World Ex US ETF
Quick Verdict
VEU has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 2818 holdings.
Side-by-Side Comparison
| Metric | QQQ | VEU | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.04% | |
| AUM | $455.8B | $67.3B | |
| Dividend Yield | 0.41% | 2.54% | |
| Holdings | 108 | 3,921 | |
| YTD Return | +18.34% | +13.94% | |
| 1Y Return | +28.94% | +29.50% | |
| 3Y Return (annualized) | +25.28% | +18.97% | |
| 5Y Return (annualized) | +15.22% | +9.37% | |
| Volatility (annualized) | 30.6% | 17.7% | |
| Max Drawdown | -83.0% | -62.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Mar 2, 2007 |
QQQ vs VEU Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US). Over the past year QQQ returned +28.94% while VEU returned +29.50%. Year to date, QQQ is up 18.34% versus a gain of 13.94% for VEU.
Over three years, QQQ compounded at +25.28% per year against +18.97% for VEU; over five years the annualized figures are +15.22% and +9.37% respectively. Across the full 19-year window we track, QQQ has the edge at +13.12% annualized vs +3.53%. 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 17.7% for VEU. 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 -62.8% for VEU. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VEU charges 0.04%. On a $10,000 position that is $18 vs $4 annually, a gap of $14 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 2.54% for VEU.
Holdings Overlap
QQQ and VEU share 5 holdings out of 2916 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VEU | Difference |
|---|---|---|---|
| SHOP:CA | 0.67% | 0.36% | 0.31% |
| PDD:IE | 0.25% | 0.19% | 0.06% |
| FER:AS | 0.20% | 0.09% | 0.11% |
| CCEP:LN | Pro | Pro | Pro |
| TRI:CA | Pro | Pro | Pro |
See all 5 holdings QQQ shares with VEU Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, QQQ or VEU?
QQQ has an expense ratio of 0.18% while VEU charges 0.04%. VEU is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, QQQ or VEU?
Over the past year QQQ returned +28.94% vs +29.50% for VEU, so VEU leads on 1-year performance. Over the longest common window we track (19 years), QQQ annualized +13.12% vs +3.53% for VEU. Past performance does not guarantee future results.
Which is riskier, QQQ or VEU?
QQQ has been the more volatile fund at 30.6% annualized versus 17.7% for VEU. Worst drawdown: QQQ -83.0% vs VEU -62.8%.
Should I hold both QQQ and VEU?
QQQ and VEU have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VEU?
QQQ and VEU share 5 common holdings with a 0.7% weight overlap. Combined, they hold 2916 unique securities.
Which pays a higher dividend, QQQ or VEU?
QQQ yields 0.41% while VEU yields 2.54%, so VEU currently pays the higher dividend yield.
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