QQQ vs VGIT
QQQ vs VGIT
Invesco QQQ Trust, Series 1 vs Vanguard Intermediate Term Treasury ETF
Quick Verdict
VGIT has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | VGIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $455.8B | $42.1B | |
| Dividend Yield | 0.41% | 3.84% | |
| Holdings | 108 | 106 | |
| YTD Return | +18.34% | -0.60% | |
| 1Y Return | +28.94% | +1.20% | |
| 3Y Return (annualized) | +25.28% | +3.71% | |
| 5Y Return (annualized) | +15.22% | -0.25% | |
| Volatility (annualized) | 30.6% | 4.3% | |
| Max Drawdown | -83.0% | -17.2% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Nov 19, 2009 |
QQQ vs VGIT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US). Over the past year QQQ returned +28.94% while VGIT returned +1.20%. Year to date, QQQ is up 18.34% versus a loss of 0.60% for VGIT.
Over three years, QQQ compounded at +25.28% per year against +3.71% for VGIT; over five years the annualized figures are +15.22% and -0.25% respectively. Across the full 17-year window we track, QQQ has the edge at +13.12% annualized vs +0.75%. 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 4.3% for VGIT. 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 -17.2% for VGIT. 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 0.04. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VGIT charges 0.03%. On a $10,000 position that is $18 vs $3 annually, a gap of $15 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 3.84% for VGIT.
Holdings Overlap
QQQ and VGIT share 0 holdings out of 187 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 VGIT?
QQQ has an expense ratio of 0.18% while VGIT charges 0.03%. VGIT is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or VGIT?
Over the past year QQQ returned +28.94% vs +1.20% for VGIT, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +13.12% vs +0.75% for VGIT. Past performance does not guarantee future results.
Which is riskier, QQQ or VGIT?
QQQ has been the more volatile fund at 30.6% annualized versus 4.3% for VGIT. Worst drawdown: QQQ -83.0% vs VGIT -17.2%.
Should I hold both QQQ and VGIT?
QQQ and VGIT have a monthly-return correlation of 0.04, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VGIT?
QQQ and VGIT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 187 unique securities.
Which pays a higher dividend, QQQ or VGIT?
QQQ yields 0.41% while VGIT yields 3.84%, so VGIT currently pays the higher dividend yield.
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