QQQ vs VGVT
QQQ vs VGVT
Invesco QQQ Trust, Series 1 vs Vanguard Government Securities Active ETF
Quick Verdict
VGVT has a lower expense ratio. QQQ delivered stronger 1-year returns. VGVT offers more diversification with 143 holdings.
Side-by-Side Comparison
| Metric | QQQ | VGVT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.10% | |
| AUM | $455.8B | $39M | |
| Dividend Yield | 0.41% | 3.96% | |
| Holdings | 108 | 194 | |
| 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 Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Jun 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
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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