QQQ vs VGI

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VGI offers more diversification with 434 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: VGI

Side-by-Side Comparison

MetricQQQVGIWinner
Expense Ratio0.18%1.74%
AUM$455.8B$88M
Dividend Yield0.41%11.98%
Holdings108646
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 FamilyInvesco (US)Virtus Investment Partners
CategoryEquityFixed Income
InceptionMar 10, 1999Feb 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

0.0%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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