QQQ vs VGT
QQQ vs VGT
Invesco QQQ Trust, Series 1 vs Vanguard Information Technology ETF
Quick Verdict
VGT has a lower expense ratio. VGT delivered stronger 1-year returns. VGT offers more diversification with 322 holdings.
Side-by-Side Comparison
| Metric | QQQ | VGT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.09% | |
| AUM | $455.8B | $146.6B | |
| Dividend Yield | 0.41% | 0.38% | |
| Holdings | 108 | 324 | |
| YTD Return | +12.48% | +20.01% | |
| 1Y Return | +22.35% | +31.68% | |
| 3Y Return (annualized) | +22.30% | +26.50% | |
| 5Y Return (annualized) | +14.24% | +17.90% | |
| Volatility (annualized) | 30.6% | 19.5% | |
| Max Drawdown | -83.0% | -54.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 26, 2004 |
QQQ vs VGT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Information Technology ETF (VGT) is a ETF from Vanguard (US). Over the past year QQQ returned +22.35% while VGT returned +31.68%. Year to date, QQQ is up 12.48% versus a gain of 20.01% for VGT.
Over three years, QQQ compounded at +22.30% per year against +26.50% for VGT; over five years the annualized figures are +14.24% and +17.90% respectively. Across the full 23-year window we track, VGT has the edge at +14.02% annualized vs +12.91%. 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 19.5% for VGT. 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 -54.8% for VGT. 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 0.98. 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 VGT charges 0.09%. On a $10,000 position that is $18 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.38% for VGT.
Holdings Overlap
QQQ and VGT share 39 holdings out of 386 unique holdings combined, representing a 54.5% weight overlap.
High overlap means holding both may not provide much additional diversification.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VGT | Difference |
|---|---|---|---|
| NVDA | 7.88% | 16.09% | 8.21% |
| AAPL | 7.46% | 14.32% | 6.86% |
| MSFT | 4.65% | 8.28% | 3.63% |
| MU | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| INTC | Pro | Pro | Pro |
| AMAT | Pro | Pro | Pro |
| LRCX | Pro | Pro | Pro |
| CSCO | Pro | Pro | Pro |
See all 10 holdings QQQ shares with VGT 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 VGT?
QQQ has an expense ratio of 0.18% while VGT charges 0.09%. VGT is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, QQQ or VGT?
Over the past year QQQ returned +22.35% vs +31.68% for VGT, so VGT leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +12.91% vs +14.02% for VGT. Past performance does not guarantee future results.
Which is riskier, QQQ or VGT?
QQQ has been the more volatile fund at 30.6% annualized versus 19.5% for VGT. Worst drawdown: QQQ -83.0% vs VGT -54.8%.
Should I hold both QQQ and VGT?
QQQ and VGT have a monthly-return correlation of 0.98, 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 VGT?
QQQ and VGT share 39 common holdings with a 54.5% weight overlap. Combined, they hold 386 unique securities.
Which pays a higher dividend, QQQ or VGT?
QQQ yields 0.41% while VGT yields 0.38%, so QQQ currently pays the higher dividend yield.
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