QQQ vs VGI
QQQ vs VGI
Invesco QQQ Trust, Series 1 vs Virtus Global Multi-Sector Income Fund
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VGI offers more diversification with 434 holdings.
Side-by-Side Comparison
| Metric | QQQ | VGI | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.74% | |
| AUM | $455.8B | $88M | |
| Dividend Yield | 0.41% | 11.98% | |
| Holdings | 108 | 646 | |
| YTD Return | +16.83% | +0.65% | |
| 1Y Return | +26.58% | +4.93% | |
| 3Y Return (annualized) | +24.70% | +11.35% | |
| 5Y Return (annualized) | +14.88% | +1.98% | |
| Volatility (annualized) | 30.6% | 14.1% | |
| Max Drawdown | -83.0% | -63.3% | |
| Fund Family | Invesco (US) | Virtus Investment Partners | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Feb 23, 2012 |
QQQ vs VGI Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Virtus Global Multi-Sector Income Fund (VGI) is a ETF from Virtus Investment Partners. Over the past year QQQ returned +26.58% while VGI returned +4.93%. Year to date, QQQ is up 16.83% versus a gain of 0.65% for VGI.
Over three years, QQQ compounded at +24.70% per year against +11.35% for VGI; over five years the annualized figures are +14.88% and +1.98% respectively. Across the full 14-year window we track, QQQ has the edge at +13.06% annualized vs -2.44%. 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 14.1% for VGI. 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 -63.3% for VGI. 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VGI charges 1.74%. On a $10,000 position that is $18 vs $174 annually, a gap of $156 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 11.98% for VGI.
Holdings Overlap
QQQ and VGI share 0 holdings out of 537 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 VGI?
QQQ has an expense ratio of 0.18% while VGI charges 1.74%. QQQ is the cheaper option. On a $10,000 investment, that is $156 per year of difference.
Which performed better, QQQ or VGI?
Over the past year QQQ returned +26.58% vs +4.93% for VGI, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), QQQ annualized +13.06% vs -2.44% for VGI. Past performance does not guarantee future results.
Which is riskier, QQQ or VGI?
QQQ has been the more volatile fund at 30.6% annualized versus 14.1% for VGI. Worst drawdown: QQQ -83.0% vs VGI -63.3%.
Should I hold both QQQ and VGI?
QQQ and VGI have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VGI?
QQQ and VGI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 537 unique securities.
Which pays a higher dividend, QQQ or VGI?
QQQ yields 0.41% while VGI yields 11.98%, so VGI currently pays the higher dividend yield.
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