QQQ vs VABS
Invesco QQQ Trust, Series 1 vs Virtus Newfleet ABS/MBS ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VABS offers more diversification with 131 holdings.
Side-by-Side Comparison
| Metric | QQQ | VABS | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.39% | |
| AUM | $455.8B | $112M | |
| Dividend Yield | 0.41% | 5.18% | |
| Holdings | 108 | 131 | |
| YTD Return | +18.31% | +2.44% | |
| 1Y Return | +25.37% | +3.58% | |
| 3Y Return (annualized) | +25.79% | +6.34% | |
| 5Y Return (annualized) | +15.20% | +3.36% | |
| Volatility (annualized) | 30.6% | 2.1% | |
| Max Drawdown | -83.0% | -7.1% | |
| Fund Family | Invesco (US) | Virtus Investment Partners | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Feb 9, 2021 |
QQQ vs VABS Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Virtus Newfleet ABS/MBS ETF (VABS) is a ETF from Virtus Investment Partners. Over the past year QQQ returned +25.37% while VABS returned +3.58%. Year to date, QQQ is up 18.31% versus a gain of 2.44% for VABS.
Over three years, QQQ compounded at +25.79% per year against +6.34% for VABS; over five years the annualized figures are +15.20% and +3.36% respectively. Across the full 6-year window we track, QQQ has the edge at +13.10% annualized vs +3.21%. 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 2.1% for VABS. 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 -7.1% for VABS. 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VABS charges 0.39%. On a $10,000 position that is $18 vs $39 annually, a gap of $21 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 5.18% for VABS.
Frequently Asked Questions
Which is cheaper, QQQ or VABS?
QQQ has an expense ratio of 0.18% while VABS charges 0.39%. QQQ is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, QQQ or VABS?
Over the past year QQQ returned +25.37% vs +3.58% for VABS, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), QQQ annualized +13.10% vs +3.21% for VABS. Past performance does not guarantee future results.
Which is riskier, QQQ or VABS?
QQQ has been the more volatile fund at 30.6% annualized versus 2.1% for VABS. Worst drawdown: QQQ -83.0% vs VABS -7.1%.
Should I hold both QQQ and VABS?
QQQ and VABS have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, QQQ or VABS?
QQQ yields 0.41% while VABS yields 5.18%, so VABS currently pays the higher dividend yield.
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