QQQ vs VFIAX
QQQ vs VFIAX
Invesco QQQ Trust, Series 1 vs Vanguard 500 Index Fund Admiral Class
Quick Verdict
VFIAX has a lower expense ratio. QQQ delivered stronger 1-year returns. VFIAX offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | QQQ | VFIAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.04% | |
| AUM | $455.8B | $690.3B | |
| Dividend Yield | 0.41% | 1.28% | |
| Holdings | 108 | 506 | |
| YTD Return | +16.83% | +12.63% | |
| 1Y Return | +26.58% | +22.59% | |
| 3Y Return (annualized) | +24.70% | +19.59% | |
| 5Y Return (annualized) | +14.88% | +11.76% | |
| Volatility (annualized) | 30.6% | 15.7% | |
| Max Drawdown | -83.0% | -25.4% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Nov 13, 2000 |
QQQ vs VFIAX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard 500 Index Fund Admiral Class (VFIAX) is a mutual fund from Vanguard (US). Over the past year QQQ returned +26.58% while VFIAX returned +22.59%. Year to date, QQQ is up 16.83% versus a gain of 12.63% for VFIAX.
Over three years, QQQ compounded at +24.70% per year against +19.59% for VFIAX; over five years the annualized figures are +14.88% and +11.76% respectively. Across the full 5-year window we track, QQQ has the edge at +13.06% annualized vs +11.76%. 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 15.7% for VFIAX. 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 -25.4% for VFIAX. 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while VFIAX 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 1.28% for VFIAX.
Holdings Overlap
QQQ and VFIAX share 86 holdings out of 520 unique holdings combined, representing a 50.6% weight overlap.
High overlap means holding both may not provide much additional diversification.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VFIAX | Difference |
|---|---|---|---|
| NVDA | 7.88% | 7.58% | 0.30% |
| AAPL | 7.46% | 6.66% | 0.80% |
| MSFT | 4.65% | 4.92% | 0.27% |
| AMZN | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| TSLA | Pro | Pro | Pro |
See all 10 holdings QQQ shares with VFIAX 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 VFIAX?
QQQ has an expense ratio of 0.18% while VFIAX charges 0.04%. VFIAX is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, QQQ or VFIAX?
Over the past year QQQ returned +26.58% vs +22.59% for VFIAX, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.06% vs +11.76% for VFIAX. Past performance does not guarantee future results.
Which is riskier, QQQ or VFIAX?
QQQ has been the more volatile fund at 30.6% annualized versus 15.7% for VFIAX. Worst drawdown: QQQ -83.0% vs VFIAX -25.4%.
Should I hold both QQQ and VFIAX?
QQQ and VFIAX have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QQQ and VFIAX?
QQQ and VFIAX share 86 common holdings with a 50.6% weight overlap. Combined, they hold 520 unique securities.
Which pays a higher dividend, QQQ or VFIAX?
QQQ yields 0.41% while VFIAX yields 1.28%, so VFIAX currently pays the higher dividend yield.
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