QQQ vs VSDB
QQQ vs VSDB
Invesco QQQ Trust, Series 1 vs Vanguard Short Duration Bond ETF
Quick Verdict
VSDB has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | VSDB | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.15% | |
| AUM | $455.8B | $896M | |
| Dividend Yield | 0.41% | 4.16% | |
| Holdings | 108 | 833 | |
| YTD Return | +18.20% | -0.73% | |
| 1Y Return | +27.63% | +1.69% | |
| 3Y Return (annualized) | +25.54% | - | |
| 5Y Return (annualized) | +15.12% | - | |
| Volatility (annualized) | 30.6% | 2.0% | |
| Max Drawdown | -83.0% | -1.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Apr 1, 2025 |
QQQ vs VSDB Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Short Duration Bond ETF (VSDB) is a ETF from Vanguard (US). Over the past year QQQ returned +27.63% while VSDB returned +1.69%. Year to date, QQQ is up 18.20% versus a loss of 0.73% for VSDB.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 2.0% for VSDB. 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 -1.8% for VSDB. 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VSDB charges 0.15%. On a $10,000 position that is $18 vs $15 annually, a gap of $3 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.16% for VSDB.
Holdings Overlap
QQQ and VSDB share 0 holdings out of 177 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 VSDB?
QQQ has an expense ratio of 0.18% while VSDB charges 0.15%. VSDB is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, QQQ or VSDB?
Over the past year QQQ returned +27.63% vs +1.69% for VSDB, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +13.11% vs +3.80% for VSDB. Past performance does not guarantee future results.
Which is riskier, QQQ or VSDB?
QQQ has been the more volatile fund at 30.6% annualized versus 2.0% for VSDB. Worst drawdown: QQQ -83.0% vs VSDB -1.8%.
Should I hold both QQQ and VSDB?
QQQ and VSDB have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VSDB?
QQQ and VSDB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 177 unique securities.
Which pays a higher dividend, QQQ or VSDB?
QQQ yields 0.41% while VSDB yields 4.16%, so VSDB currently pays the higher dividend yield.
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