QQQ vs VUG
QQQ vs VUG
Invesco QQQ Trust, Series 1 vs Vanguard Growth ETF
Quick Verdict
VUG has a lower expense ratio. QQQ delivered stronger 1-year returns. VUG offers more diversification with 146 holdings.
Side-by-Side Comparison
| Metric | QQQ | VUG | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $455.8B | $223.2B | |
| Dividend Yield | 0.41% | 0.47% | |
| Holdings | 108 | 155 | |
| YTD Return | +16.83% | +9.68% | |
| 1Y Return | +26.58% | +17.24% | |
| 3Y Return (annualized) | +24.70% | +23.75% | |
| 5Y Return (annualized) | +14.88% | +12.86% | |
| Volatility (annualized) | 30.6% | 16.5% | |
| Max Drawdown | -83.0% | -51.4% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 26, 2004 |
QQQ vs VUG Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year QQQ returned +26.58% while VUG returned +17.24%. Year to date, QQQ is up 16.83% versus a gain of 9.68% for VUG.
Over three years, QQQ compounded at +24.70% per year against +23.75% for VUG; over five years the annualized figures are +14.88% and +12.86% respectively. Across the full 23-year window we track, QQQ has the edge at +13.06% annualized vs +11.27%. 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 16.5% for VUG. 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 -51.4% for VUG. 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 0.96. 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 VUG 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 0.47% for VUG.
Holdings Overlap
QQQ and VUG share 57 holdings out of 192 unique holdings combined, representing a 61.6% weight overlap.
High overlap means holding both may not provide much additional diversification.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VUG | Difference |
|---|---|---|---|
| NVDA | 7.88% | 12.60% | 4.72% |
| AAPL | 7.46% | 11.64% | 4.18% |
| MSFT | 4.65% | 7.60% | 2.95% |
| GOOGL | Pro | Pro | Pro |
| AMZN | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| TSLA | Pro | Pro | Pro |
See all 10 holdings QQQ shares with VUG 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 VUG?
QQQ has an expense ratio of 0.18% while VUG charges 0.03%. VUG is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or VUG?
Over the past year QQQ returned +26.58% vs +17.24% for VUG, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +13.06% vs +11.27% for VUG. Past performance does not guarantee future results.
Which is riskier, QQQ or VUG?
QQQ has been the more volatile fund at 30.6% annualized versus 16.5% for VUG. Worst drawdown: QQQ -83.0% vs VUG -51.4%.
Should I hold both QQQ and VUG?
QQQ and VUG have a monthly-return correlation of 0.96, 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 VUG?
QQQ and VUG share 57 common holdings with a 61.6% weight overlap. Combined, they hold 192 unique securities.
Which pays a higher dividend, QQQ or VUG?
QQQ yields 0.41% while VUG yields 0.47%, so VUG currently pays the higher dividend yield.
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