QQQ vs VGVT

Quick Verdict

VGVT has a lower expense ratio. QQQ delivered stronger 1-year returns. VGVT offers more diversification with 143 holdings.

Lower Fees: VGVTHigher Returns: QQQMore Diversified: VGVT

Side-by-Side Comparison

MetricQQQVGVTWinner
Expense Ratio0.18%0.10%
AUM$455.8B$39M
Dividend Yield0.41%3.96%
Holdings108194
YTD Return+14.45%-0.64%
1Y Return+24.70%+1.62%
3Y Return (annualized)+24.19%-
5Y Return (annualized)+14.49%-
Volatility (annualized)30.6%3.2%
Max Drawdown-83.0%-2.8%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityFixed Income
InceptionMar 10, 1999Jun 18, 2025

QQQ vs VGVT Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Government Securities Active ETF (VGVT) is a ETF from Vanguard (US). Over the past year QQQ returned +24.70% while VGVT returned +1.62%. Year to date, QQQ is up 14.45% versus a loss of 0.64% for VGVT.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.2% for VGVT. 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 -2.8% for VGVT. 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while VGVT charges 0.10%. On a $10,000 position that is $18 vs $10 annually, a gap of $8 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 3.96% for VGVT.

Holdings Overlap

0.0%overlap

QQQ and VGVT share 0 holdings out of 246 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 VGVT?

QQQ has an expense ratio of 0.18% while VGVT charges 0.10%. VGVT is the cheaper option. On a $10,000 investment, that is $8 per year of difference.

Which performed better, QQQ or VGVT?

Over the past year QQQ returned +24.70% vs +1.62% for VGVT, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +12.98% vs +2.39% for VGVT. Past performance does not guarantee future results.

Which is riskier, QQQ or VGVT?

QQQ has been the more volatile fund at 30.6% annualized versus 3.2% for VGVT. Worst drawdown: QQQ -83.0% vs VGVT -2.8%.

Should I hold both QQQ and VGVT?

QQQ and VGVT have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and VGVT?

QQQ and VGVT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 246 unique securities.

Which pays a higher dividend, QQQ or VGVT?

QQQ yields 0.41% while VGVT yields 3.96%, so VGVT currently pays the higher dividend yield.

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